Ann: High Grade Gold Results from the Golden Hind, page-87

re: Ann: High Grade Gold Results from the Gol... Scorp, I have a decent sized holding but I am not foolish enough to bet my house on any stock.
Some credit for intelligence please.
I have a decent position in solid producer and I have cash.
The company is not just dreaming. They have done an excellent job over the last couple of years and deserve more respect for what they have built.

You have your opinion on what you think of this stock, I have a very different one.
I also have a very different view on whare the price of gold is going and I am in good company on that point.

Not much that needs to be said about the following other than there has been much more money printing now than in the 70’s and probably will be much more still.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/8/15_$12,000_Gold,_Paulson,_Soros_%26_A_Coming_Mania_In_The_Shares.html

“Gold, between 1976 to 1980, went from roughly $100 to $800. Well, if you do that kind of math for gold over the next four or five years and you multiply $1,600 by a factor of 8, that takes the price of gold well over $12,000.”
Leeb also added: “I just want to help people here and my message is to own gold. But again I have to say something about these junior gold stocks. For these major gold companies that are looking to replace their reserves, they are going to have to start buying the quality junior gold companies. Investors can expect to see a lot of acquisitions.”
I hope we can get closer to at least 8c before any offers are made for ABU.
When an asset ends its bull run, it usually does it after far exceeding its “fair value” in a blow off phase. Gold has not even come close to fair value yet.
My gold target as many here know is a minimum $2,400-2,500 (based in increase in M3 money supply since 1980 in the US).
I didn't make that number up; I spent a lot of time researching what gold was doing in the lead up to the 80’s, what it did after the $820 high, and how M1, M2and M3 has increased over the period since.

Alf Field’s target is $4,500 based on his strong record to date predicting POG using Elliot wave.

Jim Rickard's calculated target is $7,000; "sooner rather than later" based on price required to give a sound backing to the current money supply.
This guy is no crackpot. For those that don't know him, Google him.

My target looks tame by comparison to those mentioned above who are far more expert in their fields than I am but my $2,500 would be easily sufficient to ensure Buccaneer becomes very valuable (more valuable than OP) and Old Pirate will be worth much more than the current around 8c valuation (closer to 15c before allowing for tax). What would ABU be worth at $4,500 or $7,000?
Any gold stock will do very well if gold goes to new highs.
I’ve said before that I think to see gold at levels like $4500-$12,000, it will probably come with plenty of inflation, but even then at least we are getting a solid inflation hedge owning gold stocks. However I do see upside to at least $2,500 and potentially quite a bit more without any significant increase in inflation and that is where I expect to see the best wealth creation. Any further gains in gold if matched by inflation are more of an inflation hedge rather than wealth building (but still much better to have an inflation hedge than not).
I prefer ABU for the safety of very low capex and very low cash costs of OP (enough to ensure funding with ease and strong profits and sp gains at current POG and lower), but I also like it for the extraordinary leverage that our other project -Buccaneer, offers in case these guys are even half right. Yes we are not producing yet, but that just increases the overall upside because our sp strongly reflects that we are not yet producing. We have a very low mc relative to base case scoping study valuation based on jorc resource only and on open pit only.
We can double in price on that alone once in production before adding the value of what has been discovered since the jorc and on potential for u/g mining. The upside from higher POG is just another potential catalyst to add to the already strong upside which should result as we progress toward development.

Rickards interview on ABC.
http://www.abc.net.au/news/2012-08-14/full-version-of-currency-wars/4198830?section=business

My sentiment remains strong buy until closer to 8c.