originally we started comparing these 2 different investment strategies when AGO was $22.00 per share and GOLD was at $1120 an ounce.
today as we speak AGO is now $15.00 per share for a loss of roughly 30% of your capital. GOLD is up a little less than than 5% for a slight apreciation of your capital. i suspect going further down the road you will get more of the same.
this week brought the biggest fall in the price of gold in the last 12 years. it was very fast proce destruction. gold has gone down from a high of $1915 down to $1650. there could easily be more downside in price like down to the $1485 level. even at that number gold is in the biggest bull market of all time. that is how markets work. there are constant tests and retests of stong equities. in 2 years you will think that this past week is just a joke as to where the price will be. you got your second chance to protect yourself, its your choice whether you believe or doubt the inevitable.
after the wilbur ross bounce, ago is trading back to normal at $11 and heading down further.
with the currency crisis going on throughout the world gold is now trading above $1800 level. i suspect there might be a little further consolidation in the gold market, i suspect that by the first quarter of 2012, one ounce of gold will buy you about $2500 worth of united states printed currency. i also suspect that it will keep on buying you more and more currency as the days go by.
changed my mind -- am keeping the gold position and adding to ago. my gold position is much greater with an approximate weight of 3 to 1....will simply adjust this to 2.5 gold to ago ratio......as I think both are safe bets today with some upside.
based on these numbers and my insight into gold and ago, i am selling 1/2 of my gold and buying more ago -- today. thank you for the homework -- not your recommended strategy but good insight and R&D.
i know you guys don't like hearing from me, but when you look back at where this thread started gold was @ $1120 now its $1400. i keep coming back to this board because i had a friend on it, and this AGO stock looks weaker and weaker as time goes by. i will come back one more time when gold reaches $1500 to compare these 2 investment strategies.
for the guy that begs me to spare him, there are others here that like to hear from me.
i wish all our veterans the best and happy thanksgiving to all