POG

I am watching the POG very closely. If it continues to crumble, then something is very wrong with the financial world. When it fell below USD$1600 per oz, I thought my portfolio is going to tumble very badly. It did. But today, it has found its floor again.

My logic is that desperate investors will sell off their gold while central banks cannot. The latter sell in tons and will profoundly affect the POG. On the same note, the big producers will also cease production if gold mining is not profitable.

Over the year, my wife has been telling me to save to buy a property. That is one reason why I have not done much private investments. Most are via the super fund. It certainly was a good decision... and I had a share in concurring with her. But credit is due mostly to the wife. I want minimal loan from a bank as it would affect our lifestyle.

I notice that ABU has fallen significantly. With so much gold to further uncover, this must be amongst the cheapest successful gold explorers.