It's been interesting to watch SLR hold in all the recent turmoil, as if it's at a rock bottom price no one will budge below. Good vibe.
Of course you know I am waiting for Martin Armstrongs gold price of approx $930 before I buy SLR..... (If he is right, I will be happy, if he is wrong then perhaps next time I will listen to you)
Wouldn't it make more sense to buy gold assets using converted AUD to USD if your grand poobah says that the USD is going to record highs? That way you win twice with the rising gold asset in USD and the falling AUD/USD pair
Well Armstrong thinks the DOW will go to 30000+ so it would be better to buy the Dow wait for it to double, then convert to AUD (double up again) then buy gold under $1000. But then again he also thought for sure the FED would raise rates by now :lol: oh and that the AUD be around $2 to USD instead of 70c where it is now.
It would make more sense for someone in the u.s.a to convert to aussie dollars when our gold stocks bottom so they get maximum stock at the best exchange rate. When gold and silver turn, along with other resources, the aussie dollar will gain ground on the U.S. dollar, even with the u.s. dollar index driving to new highs.
Just half reading a daily reckoning emailed commentary, and Greg Canavon is describing the A$ Gold price as a 'stealth bull market' since November last year. More so the Australian gold stocks. He says of some Oz gold stocks, Illogically, I haven't been able to see past the usd gold price to look optimistically upon the Oz goldies. I'd like a true resumption of the gold bull market, not a local currency based one.
Every time a friend succeeds, I die a little - Gore Vidal So I guess some here are pretty pleased with their gold stocks: SAR, EVN, NST, SBM, NCM, even SLR It won't last
There's a few headwinds that makes me think you are right. Major support levels for the USD index between 93-93.5 ECB and/or BoJ announcing further increases to their QE programs which will weaken their own currencies against the USD which will put pressure on the gold price. Over-extension of the gold price over the past month or so. Even if the Fed doesn't raise rates, they're far from easing monetary policy.
As long as the aud/usd pair is solidly negatively correlated to the dxy and aud gold can stay above $1600 then I think that will soften the blow, particularly for the miners with primarily Australian mines. They've definitely gone a little far a little fast unless this is the beginning of the big one when gold goes to $2000 and doesn't come back, but I don't think we're near that yet. Plenty of stops and starts on the way to come, question is do you trade it? Do you sell the SLR you bought at 14c at 27c to buy back at 20c?
You don't have to sell all of it at 27c or any of it if you're happy to ride it out I'm probably looking to lock in some profit on Monday afternoon before the ASX close or Tuesday morning next week, wait to see what happens Thursday evening to see what my next move will be
I guess that's the thing you never know until you look back in time. So it could be the start or it couldn't, there is nothing to say either way. Flip a coin I tell you though, there are more real reason for it to go up then down. But i guess we live in a world where people don't act on reason.
Who says it's going back to 20 cents? There is absolutely no reason to believe that, pure speculation. If you need the money now, sell, if you don't, hold them. I think SLR will eventually get back into the dollars range if you hold them long enough, that's what I'm in it for. I just nabbed some more at the small dip to 25c.
This ^^^ I think it might be sooner rather than later as well.. I'm in at 15c and probably will stay that way forever. If it goes up to $1 based on future dividend earnings I'll probably pay off the stock cost in no time then they are free and can do what they want. SLR price will go mental on another crash, especially if its a real one this time. And as it is the SS site, isnt that what we are all thinking is on the cards anyway?
I fully expect it to take at least a few years to get back into the dollar range. What happens in a crash though, I have no idea.
