Facebook's Weak IPO Increases Likelihood Of Inflows Into Gold Stocks

By Simit Patel:For many of us gold bugs on Seeking Alpha, a forthcoming mania in gold and gold stocks, reminiscent of what occurred in the '70s (but likely bigger), is all but a foregone conclusion.

By Simit Patel:The case for a mania in gold-related assets has been made numerous times by myself and many other gold bugs who have been focused on this sector for years.

GoldCore has a pair of interesting article on German concerns about its gold reserves. The most recent article regards  held outside Germany. Please consider Germany to Review Bundesbank Gold Reserves in Frankfurt, Paris, London and Federal Reserve Bank of New York

By Simit Patel:Over the past few years, gold stocks have lagged significantly relative to bullion itself. Royalty stocks, however -- meaning stocks that focus on owning revenue derived from mining properties via royalty agreements rather than mining exploration and operations -- have been notable outperformers.

By Simit Patel:Fears of a sizable drop in the market are largely unfounded, as the presumption is that sufficient stimulus from the Federal Reserve to thwart such a drop will not occur, but I believe such stimulus will occur. Moreover, I regard the US equity markets as being in a secular bear market since 2000. I don't expect secular bear markets to last for more than 15-20 years, and think we are closing in on the end of the bear and are ready for a new secular bull market to resume.

After a $325 rise in 2010, gold bullion yesterday suffered its steepest one-day loss since July – down by $34 at the U.S. close after an intra-day low of -$40. The chart below shows the sell-off plunging the gold price down to right on top of its 50-day moving average. Also, the “triple top” could point to more downside in the short term.

By Simit Patel:I recently acquired some shares of Pan America Silver Corp. (PAAS) indirectly; these were shares given to previous shareholders of Minefinders (MFN), a company which Pan American just acquired.

John Spence submits: Exchange traded funds listed around the globe that invest in gold hold more than $1 trillion in total assets as investors continue to move into metals ETFs to hedge against inflation and seek shelter from sovereign debt uncertainty. Gold ETFs added 45.6 metric tons of bullion, or 2.2%, in the second quarter, according to a report this week from the World Gold Council. Together, they now hold 2,155.3 metric tons of gold worth over $1 trillion.