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Matthew V
Member since May 2012
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Are Gold Stocks The Real Barbarous Relic? - Sam Kirtley - Sk Options Trading

Your reasoning is just as flawed. I find it odd that not once did you say that you own any physical.

Why buy virtual ETF's, paper futures and paper everything if the whole point of owning gold is to be out of the financial system ? The whole reason gold is going up is because people want out of the financial system.When we have a real crisis, like when the COMEX defaults, when the derivatives bubble explodes or when the US dollar crashes and brings every paper exchange with it, your futures, derivatives and ETF's will come to their intrinsic value which is ZERO.

On the other hand, with any number of the debt free, un-hedged gold mining equities out there, after the big crash you own something with real intrinsic value.(maybe not as much as physical gold but...) A functioning mine has real value, gold reserves close to the mine have value. When the dust settles, the intrinsic value of a mine is not ZERO like all of your fancy paper.

Funny how one of the premier gold stock pickers out there(starts with a C) claims the same return, 117%. But who will be further ahead when the real crisis hits ? I would rather own a few debt free, un-hedged miners then virtual financial derivatives.

by Matt from Edmonton

Commented 4842 days ago

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Beginning of the headline : In 1924 John Maynard Keynes referred to the gold standard as a "barbarous relic", but we think the new barbarous relic is using gold stocks as a trading or investment vehicle in an attempt to benefit from rising gold prices.This isn't the 1970s.One can buy GLD call options from a laptop in bed or take a long position in gold futures with a few taps on a smart phone whilst in line at a coffee shop... Read More

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