Yo-yo

Don't bother buying a yo-yo; just watch the price of gold bouncing up and down.  And it bounces spectacularly.  What this tells me is that it is not merely a supply demand thing but market manipulation.

RB wrote recently that $1 spent by successful gold explorers found 11oz of gold in the last decade.  That is a good reward!  But it has to be compared.  In the past, that $1 resulted in much more gold uncovered; 105oz in the 1960's.  And gold demand is outstripping gold discovered.  All these bode well for gold... except that gold is not actually "consumed".  If big hoarders sell their bullion, then the POG will crumble.  Fortunately, central banks cannot just dump their gold reserves.

Hence I am still a gold optimist.  At the current PG, a lot of my gold producers are still profitable.  I have put a low buy for ABU but I doubt it will get to that level.  But I am always happy to help desperados.