Gold stocks

Gold stocks got knocked a lot today. Yet, it seems investors do not realize that in time of trouble, dumb investors are always forced to sell off their best performer first. When you have a margin call on your loan, you can be very desperate.

Yet, money can be printed, debts do not go away, governments can only do so much if the citizens are lazy or overvaluing themselves and natural disasters occur all the time in different frequency, severity and location. Gold is not easy to find or produce. But there are many hoarders, including central banks.

There are still many profitable producers even at USD$1600 per oz. At the moment, reversals look likely but you can never tell in the current climate. Inshallah!

So my favorite stocks are still gold producers. But market sentiment will override any logic. If I put a very low bid and desperate and idiotic sellers want to sell, I am always happy to oblige.