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Re: XEC is in serious 'buy' territory again ... addendum ... 

By: DueDillinger in CONSTITUTION | Recommend this post (1)
Fri, 19 Aug 11 9:32 AM | 31 view(s)
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Msg. 14548 of 21975
(This msg. is a reply to 14544 by monkeytrots)

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Yes. The difference between gold/silver and other commodities is that these metals are real money so there is more to their markets than supply/demand, and it is vital to hold these assets in physical form. This is only true of other commodities in a complete collapse.

To find the real value of commodities and discount the effect of 'shrinking' currency value, price 'em in gold. You can do this with the DJIA for a real eye-opener. Some say that before this 'crisis' is over, we'll see the Dow at par with the price of an ounce of gold.

This is an old chart. The djia/gold ratio is just under 6 presently.

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Re: XEC is in serious 'buy' territory again ... addendum ...
By: monkeytrots
in CONSTITUTION
Fri, 19 Aug 11 5:22 AM
Msg. 14544 of 21975

With the 'calling' of physical gold escalating - I expect that actual commodities will follow suit in 'rising in price' ... or, to be more precise, that failing currencies worldwide will make ALL commodities much, much more expensive.

Do I expect more tree shaking - the crooks that short the futures drive prices down temporarily so they can 'clean up' on weak hands ? Absolutely.

But, as with gold - I see that tree getting a hell of a lot harder to shake each day as individual investors start realizing the difference between 'intrinsic' value and the 'bullshit hyped' financial market valuations.

PHYSICAL COMMODITIES, consumables necessary for living such as food and energy - have intrinsic value.

Just my take.


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