When you consider a company like Newmont Mining announced the complete elimination of its entire 1.85million ounce gold hedge position, to maximise gold price leverage. You would have believe a major decision point was that Newmont believes the gold price is heading higher.
Also consider this fact that not many are aware of. The chairman of Mundo George Jones, in his early days following his time in the ANZ Bank as a business investment banker (and prior to Portman days), one of the first in Australia to introduce gold hedging along with another very conservative ex banker in their own company. George Jones knows the gold market extremely well and does not speculate. He is, and always has been, in his own words "conservative". George Jones is on Mundo because it will be extremely successful, so am I.
Do your research on this highly successful financier and the people he surrounds himself with, then watch closely the Mundo developments and you will begin to understand why I am so bullish on Mundo. I add that Mundo are completely unhedged.
Also consider this excerpt from Market Watch in relation to the gold direction.
Bill Rummel, a coin collector and investor for decades, predicts that "all collectables are ready for ignition -- again."
"It's asset redeployment," he said. "Most people are momentum investors and don't buy until prices are much higher -- too high -- and will sell in despair near the bottom."
"Don't attempt to jump aboard a runaway train," he warned.
Fine line
Of course, don't forget the plethora of other investing options for the precious metal.
There's the gold futures market, mining shares, ETFs that invest in gold itself and others that invest in mining companies, and custodial gold products. Some of these choices straddle the fine line between physical and paper ownership of the metal.
First, it's important to remember that gold is money and should therefore go in an investment portfolio's cash component, said Turk. And cash is "liquidity and savings."
Mining stocks are an investment and clearly go in the stock component of a portfolio, he said.
Then, the question to ask yourself before you decide in which form you should buy gold is "are you a speculator, investor or saver?" said O'Byrne.
"Physical [gold] is bought for investment, saving and financial insurance,"
http://www.marketwatch.com/News/Sto...0738A-740E-457A-9B96-14E4D53AC7DD}&siteid=nbk
My disclosure
I am not a gambler, I am an investor. I now have a significant exposure to Mundo.