Zeev's Turnips Patch-No Politics (ZEEV)

[basserdan]

If deflation does enter the picture, I believe we would see an absolute panic for real money -- gold. With everything around us going bankrupts because of unsustainable debt, gold would shine like, well, like gold.
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Basserdan - how would Miners perform in such an environment. Or in other words what would be more profitable to own. Gold or Gold stocks.
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Hi JMK,
Fwiw, I believe the potential leverage advantage in owning the gold stocks far outweighs the profitability of owning the metal.

If gold doubles from here, you will almost double (less fees) your money but have to pay 28% long term cap gains taxes (Au is a collectible in the eyes of the IRS).....

If gold doubles from here, one could expect the gold stocks to increase by several times that of the metal with the better miners doing considerably better.

In my view it's a no brainer! Buy the miners.