Crazy market

Someone with a deep pocket is listening to me. Worry about debt will cause economy to slow down which will make the debt problem worse because of deleterious effect on recovery.

But this is not 0911 nor is it SARS where everything locked down. AAA and AA+ difference is no big deal. The world is moving on. The PIIGS can stay in a sty while the rest of the world should just carry on.

Suddenly the market took a turn in the afternoon. POG went higher to over USD1750 per oz while AUD recovered a little to USD1.02. I put very low buy prices so I didn't collect any more shares today. I worked on the premise that if those idiots are so desperate to sell, I would lap those shares up. Yesterday, I collected CNLO at 16c, a drop of >30%. Today it is 19c.

Those gold producers that I bought yesterday when I went on a rampage have all done well. But how long is this recovery? LSA went to 72c so one parcel was okay but the first parcel bought at 78c is still a loss. But why worry? LSA market capitalization is AUD$40million and it produces gold revenue to USD$70million per year. The gold cost around USD850 per oz to produce. So USD900 per oz is profit! That means the PE ratio is around 1.