Be ahead of the big guns

http://www.mineweb.com/mineweb/view/mineweb/en/page31?oid=140049&sn=Detail&pid=31

When these blokes are buying, you are perhaps a little late but not too late. If you can beat them to the line, then you might be smarter but not richer!

The arithmetic is so simple that I am sure my father with just two years at school would have thought the same as me, if he was still alive. How absurd it is that the POG has been high, the gold PRODUCERS have been churning out the precious metal and yet the share prices have been mostly languishing behind or not climbing as POG is? Look at RMS, KCN, KMC, IGR. These are stocks that I own so I am more conscious of their performances. Even the new crop of West African producers are not given proportional credit for their recent commencement of gold production.

The floor was USD$1600 per oz. In the last fortnight, at least, it has not gone below USD$1700 per oz. The POG cannot keep rising because when it is too high too fast, the speculators would start unloading their gold and drop the price. Plus, central banks might even sell and join in the speculators' fun. There is a lot of gold stashed in central banks but more are purchasing than buying because the Euros and USD have become volatile and diminishing in value. But then, there isn't that much gold to go around.

Why do fund managers get paid heaps to follow the big boys like lemmings when they should be thinking themselves? Unfortunately, whether share prices go up or down are often dependent on how these idiots trade in the short term.