POG

I have been watching the POG in the last 2 weeks. I never expected share prices of gold producers to reflect the rise. What I pondered was, how long before it tumbles.

POG has a momentum but market valuation of miners is sluggish. Buyers of gold become lemmings and lemmings have no brakes.

Suddenly, a seller (hoarder, gold merchant, central bank, desperate investor) will dump a whole lot into the market to capitalize on the rising price. That will get absorbed again after the POG has fallen far enough.. and then the lemmings start to run again.

The big rise in markets around the world last night has given rise to some optimism about the stock markets. Yet the uncertainties are still so profound. Greeks are not going to turn into Thais overnight. Certainly, not into Chinese.... those in Greece are living on debt, overpaid and not diligent enough. Maybe it should try Communism.