Something Bullish

By Brad McFadden

Something bullish appears to be developing in gold, and we believe that it is indicative of the beginning of a breakdown in the confidence of government bond markets. Given the extremes to which government bond markets have been pushed, the upside in gold is likely to surprise even the most hardened gold bug.

To appreciate gold it does help to have “been there, done that”. When I was living in Johannesburg in the late 1990s, my friend invited me to come on an adventure. He was a mining engineer on one of the deepest mines in South Africa, just south of Johannesburg.

2.6 kilometers down towards the center of the earth. Yes, I have been down that deep before, and it really did feel like I was a lot closer to the center of the earth. The rock on the sides of the tunnel was too hot to hold your hand on for more than a few seconds. I reckon it must have been at least 50°C. The air temperature must have been about 30°C with a humidity factor from hell to boot.

To go that low you have to get into one of these things — a mine cage — together with a whole bunch of sweaty mine workers.

Then you drop at about 50km/h. Kind of scary when you are dropping that fast (not that I wanted to admit I was shitting my pants just a little).

Then on go the brakes as you approach the bottom, but it takes about a minute or so to stop bouncing up and down. I guess that is what happens when you are on the end of 1.6kms of wire cable?

We then got out of the cage, walked about 50 meters or so, and got into another cage and then dropped a further 1km.

At the bottom, we got into an electric train (gas fumes would kill everyone down there) and traveled what felt like a couple of miles to get to the face where the miners are drilling away. I had a go on the drill for about 20 mins and it was the toughest workout of my life. Trying to drill with the incredible heat and cramped conditions and the noise (the noise is deafening). I tried not to think about the fact there was 2.6km of rock above me. My goodness, what a hell of a way to earn a crust!

1 2 3 4
View single page >> |

Today’s article comes to you from Brad McFadden, the head trader at Capitalist Exploits Insider and the co-founder of Glenorchy Capital.

Disclaimer: This is not intended to render ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.