Yamana Gold, Inc. Message Board

  • crazy1090631 crazy1090631 Mar 5, 2007 8:36 PM Flag

    SInclair mentions derivative meltdown

    at a money center bank might happen this week. If this is true and it dows happen, gold will rocket over $1000 in a heartbeat. I am sure the derivative crash will happen, I just am not good enough to time it. When this happens, real estate is going to to lower than a snake in the grass. It oughta be interesting.

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    • The problem is that all asset classes seem to be grouped together because they are all used as collateral for leverage.

      Inflation is the driver for gold.

      • 2 Replies to baecorine
      • Bae: Let's not oversimplify inflation as the only driver for gold. USD, Political Unrest, Financial meltdowns readily come to mind. My reason for staying long gold and AUY is that I firmly believe the FED is going to have to cut FED funds by 50 basis points by June. No way around it. Subprime meltdown is already showing signs of not being contained to just the subprime lending co's. MER and other brokers as wells as many major banks (think HSBC, CitiBank) have major exposure to the subprime borrower. Fed lowers rates, dollar breaks 80 level and gold is going higher, much higher. Let one major financial institution promulgate they're having problems and this blip down in the DOW this past week is gonna look like a dot on a one year chart. Gold will eventually revert back to its historical role as a safehaven when the fit hits the shan.

      • The bottom line is this: Given the choice between holding an asset class based on PM's or general market equities, which would you want to hold? I prefer the former. Yes, it has sold off with the rest of the market {even worse so today}, but it's future potential for recovery and progression is far above the latter. Right now I have short positions, that I am looking to cover VERY SOON, and reinvest into AU miners {AUY, NAK, SA & GRS}.

5.07-0.02(-0.39%)Jun 27 4:02 PMEDT