© Thunder Road Report - 28 March 2012
accounts), Chinese and Russian central banks, Arab royals, Asian billionaires, Indian farmers,tin pot “stackers” and others stay focused on “squirreling away” physical metal. An almostunknown, except to a few, “sage” of the gold market once forecast (I’m paraphrasing but it isclose enough) that:
“Physical gold will need only to be ‘priced’ once during this lifetime and that will be more thanenough.”
Beneath the surface and behind the scenes, this process is playing out irrespective of the current
look better than it really is. You know what they say about working out who the sucker is in agame of poker?
(dips) in the gold price - beautifully summarised by the acronym “BTFDs”. (Please note: anyfunds which are playing in the gold futures market, or on the LBMA and NOT taking delivery of physical metal, are only making it easier for the cartel banks…and likely setting themselves up
Many people have given up on the gold equities but I’m sticking with mine.The majority of big cap gold mining companies and hoards of smaller gold miners anddevelopment/exploration companies are quoted on North American markets and, to a lesserextent, in London/Johannesburg – precisely when the most severe manipulation of the goldprice has taken place since last August (see below). Consequently, I think the share prices of some very good companies are substantially lower than they would otherwise be;In each of the last three years, gold equities have had a weak start to the year versus theoverall markets (HUI Gold Bugs Index versus S&P500), only to trade at much higher levels inthe second half.
HUI versus S&P500 (3 years)
For 10 components of the HUI (including the largest ones), I created an index of forward-looking Gold Cash Flow (GCF) per share, comparing the outlook for 2012 (as it currently stands)with the outlook for 2009 at the same time, i.e. after the release of reported Q4 results and