[s-cars] NAC Gold Update

[JC]

this is a weird venue for the discussion but FWIW you're missing critical
distinctions - really you can sort this into a lot more categories which are
distinctly different.  for instance (might be more?):
1. physical delivery of gold (coins, bars, jewelry)
2. future / forward contracts on gold
3. options contracts on gold stocks
4. ETF's based purely on gold price through physical and/or forward
contracts (ex: GLD, IAU)
5. ETF's/Mutuals based on gold sector indexes - AKA a collection of gold
mining stocks (ex: GDX)
6. actively managed mutuals on non-index based collection of gold mining
stocks
7. owning gold stocks straight up

I believe there are some blended ETF's / Mutuals that combine stocks and
gold contracts but can't tell you what they'd be. obviously there's pros and
cons to each of the above.

note that gold price is not the simple solid hedge against all currency &
inflationary risk that people are used to thinking of it anymore.  the price
is determined by a complex and difficult to predict combination of:
1. industrial demand
2. investor activity including not just speculation and hedging but things
like sell-offs to cover margin calls
3. sovereign gold reserve management (selling & buying for various reasons
as well as the supply of minting into bars/coins)
4. physical production - mine output

basically right now if you try to start reading the experts on the gold
situation, you can find 'an expert' to support just about any range of
opinion you could think of.  look into the explanations 'experts' offer for
why gold dipped so hard last month. try seeing what 'experts' think about
the current backwardation situation.

welcome to our current global disaster... the only thing certain is
uncertainty...

take this not as an endorsement or condemnation of gold investment by the
way, I have some gold based investment but not close to a majority of my
portfolio...

by the way, coins are more divergent from the underlying gold price as they
have another layer of minting supply/demand layered on top of them - some
even think that goverments are limiting coin output to keep people from
taking money out of the banking system, which obviously would be a 'price
distortion'.  of course if you feel you need that 'stuff in the mattress'
security you can always go into big bars...

John J. Cunningham
jc at j2c3.com
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> -----Original Message-----
> From: s-car-list-bounces at audifans.com
> [mailto:s-car-list-bounces at audifans.com] On Behalf Of bill mahoney
> Sent: Tuesday, December 16, 2008 17:32 PM
> To: Audi S Car List
> Subject: [s-cars] NAC Gold Update
>
> Folk's,
> A while back I had enquired to the all and knowing list about
> "how to buy gold?"
> I said I'd get back with what I had learned and so are a
> couple specific ideas.
> I would say the two best ways to acquire it are:
> 1.  Physical delivery... best done I think via gold coins.
> Best coins are
> .9999% pure gold via US mint (American Buffalo coins) or
> Australian Perth MInt.
>      Only one coin (one oz. "Celebration Coin" is still
> available at the US mint.  The Perth Austalia mint currently
> is not shipping anything I think until early January, or who
> knows when.  I like the smaller 1/10 oz.
> unobtainium coins.  They are suppose to come out with .9999
> "Double Eagle"
> in January, but given the state of the state who knows when
> if ever they might get it out.  Insert your own conspiracy
> theory here.
>      As our Illinois Gov. might say "the US Mint is F'n F'd
> up!"  I hope they do better with the car biz.... BUT, if the
> coin is available when you order, you will receive it
> eventually.  Calling often and making a friend is recommended.
> 2.  Gold/mining stocks, NEM and/or  ABX and ETF's, GLD and/or
> IAU.  Do your own research and by all means pls share.
>
> I am most assuredly not one to offer any investment advice
> and this surely ain't the place to do it and YMMV, but "I"
> "think" we may be in for a bit of inflation here and I don't
> think it will hurt to own something with intrinsic tangible value.
> My .002 FWLIW
>
> Bill~"I don't know where I'm a gonna go when the vol~cano
> blows"~M _______________________________________________
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