are the stars lining up?, page-30

Despite my lack of trust of the US market, there still is at least one significant fundamental justification for the market going higher so sometimes I wonder if I am too skeptical.
As long as the market believes the central banks can keep things under control- especially low interest rates;
Then funds are going to see better returns from dividends than from cash where interest rates are almost non existent.

Any profit from marginal interest rates earned from cash is taxed and then eroded by inflation.
Real interest rates in the US and Europe are negative even without tax. I.e. inflation is higher than rates, while dividends on many large corporations are higher than inflation and much higher than interest rates and have the potential to offer a hedge against inflation.

So perhaps the party will go on for a considerable time yet. Perhaps as long as dividends remain well above interest rates.
How long probably is impossible to guess.
As long as rates are low and under control, that is bullish for gold and bullish for markets so giving the ABU share price a green light as we progress towards our trial mine and then full production.
Also very bullish for gold is major economies running deficits. As long as they continue to spend more than they earn through taxes they have to keep creating money.
As long as they do that gold has strong fundamental reason to continue its long term uptrend.
That I am confident will last for a very long time. This is why I only invest in gold stocks.


A gold price above $1900 will give us much more than just a green light.
Last years 8.2c high for ABU may have had as much to do with Buccaneer as it did with OP.
A gold price above $1800 may have had the market thinking that Buccaneer was starting to look quite attractive.
If we get up to new highs again in gold, we will have more than 8c justified by OP- probably around 11c at $1900 gold (8c is based on 1600 gold) and potentially more depending on the findings of the updated scoping study. Then add some value for Buccaneer. If the market values Buccaneer at 4c at $1900, we could easily be looking at a sp target in excess of 15c. That’s if we ignore underground mining potential.
By then we may have the initial scoping study findings for Buccaneer to give the market some guidance.
I’m sure it will take a significant amount of time to reach 15c and hopefully well beyond, but I am in this one for years not months, and I expect to see strong enough gains this year to justify being set now.