Comments on: Gold is the Only Place to Turn in Times of Inflation http://www.dailyreckoning.com.au/gold-in-times-of-inflation/2008/09/09/ An independent perspective on the Australian and global investment markets Sat, 20 Mar 2010 06:22:53 +0000 http://wordpress.org/?v=2.8 hourly 1 By: Coffee Addict http://www.dailyreckoning.com.au/gold-in-times-of-inflation/2008/09/09/comment-page-1/#comment-40547 Coffee Addict Tue, 09 Sep 2008 05:28:22 +0000 http://www.dailyreckoning.com.au/?p=3656#comment-40547 To the portfolio of gold juniors, precious metal bars, bulk metal juniora nd energy producers you could also add "rare earth". Look it up - it has a lot to do with zirconium and periodic table elements (sometimes called semi metals) that are necessary for a range of high tech and emerging products. There are a number of rare earth prospects in Australia and one in Canada that I know about. Mogambo is hinting at a complete meltdown that will blow all the above investments away, and your super as well. Gold bars will still pass the weight (if not value) test and diamonds will still pass the sparkle test (though perhaps at bling values). The rare earth will stay buried (temprarily) in these circumstances. I'm not convinced that gold will rebound as an important medium of exchange but I can foresee some fund managers keeping 5% to 10% of their portfolios in precious metals bars as a hedge. From what I can see, some funds are quietly shopping around for underpriced gold (and metal) juniors. If proved and inferred prospects are really good, the worst thing that can happen to these underfinanced firms (other than political risk and associated bankruptcy) is getting swallowed at a premium. To the portfolio of gold juniors, precious metal bars, bulk metal juniora nd energy producers you could also add "rare earth". Look it up - it has a lot to do with zirconium and periodic table elements (sometimes called semi metals) that are necessary for a range of high tech and emerging products. There are a number of rare earth prospects in Australia and one in Canada that I know about.

Mogambo is hinting at a complete meltdown that will blow all the above investments away, and your super as well. Gold bars will still pass the weight (if not value) test and diamonds will still pass the sparkle test (though perhaps at bling values). The rare earth will stay buried (temprarily) in these circumstances.

I'm not convinced that gold will rebound as an important medium of exchange but I can foresee some fund managers keeping 5% to 10% of their portfolios in precious metals bars as a hedge. From what I can see, some funds are quietly shopping around for underpriced gold (and metal) juniors. If proved and inferred prospects are really good, the worst thing that can happen to these underfinanced firms (other than political risk and associated bankruptcy) is getting swallowed at a premium.

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