POG

There have been some gold bulls raving on about POG hitting USD$2000-3000 in 2012. Of course, it may hit that level but it would have to be mad bulls that cause the bubble. As long as it can remain just over USD$1700 without AUD appreciating further, I am more than happy. A lot of my gold producers have production cost at under USD$1000 per oz.

Gold has always found its own level and bulls and bears can only affect the yoyoing but over the long term, its value will find its own equilibrium, free from those animals.

I have been collecting alphas recently mainly because of gold stocks in my portfolios. While the value has fallen today, it has fallen a little less than market average.