Not good as gold

THE Germans can show us how to build a gold investment culture. The Outcrop by Robin Bromby.

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An investor of my acquaintance, a gold bug, has had a change of heart.

No, he hasn’t forsaken the yellow metal but is changing his strategy. For years he has chased the juniors, looking for the 10-bagger and the bonanza grade drilling intersection to put him on easy street. Now, however, he is looking at established producers that pay a dividend (a very small crowd, unfortunately).

He is still waiting for the gold “big bang” when the debt bubble implodes and punctures the global economy; in the meantime, however, he wants to see some return on his money. That way, in his view, he gets it both ways – short-term yield, longer-term gold sailing well past the US$2000/oz mark and accompanying huge capital gains for his stoc...