pog looking dodgy, page-46

Same here john risk

Have actually swapped out of my mid to blue chip gold producers as they are going to feel a pinch here no doubt, but absolutely no reason to be irrational and see the selling spread into well positioned junior explorers.

Key is cash on hand, JV funding and ability to meet ongoing commitments for the junior end of town. Most of them are already grossly undervalued with no exploration success or upside priced in.

You have a junior finding 3-5Mozs, I don't care what the price of gold is today, they are still going to attract someone's appetite if even as an arbitrage/option play for when prices correct in the next 12-18months.

Smart money and long term thinkers like the Chinese will be throwing cash to option deposits at these levels as a longer term strategy.

You don't buy the deposits when POG is $1,900, you buy the deposits when POG is on its lows and develop it through the recovery. I can assure you the Chinese don't simply close their wallets and shut up shop with acquisitions because POG drops $30 an oz. Where will gold be in 10, 25, 50 years is their view.