Some great posts about gold and what's happening in the US to supress it.
The market was horrible, but it has unearthed quite a few bargains.
These sort so episodes really do test your inner strength but as has been written, the volume speaks of those that probably had to take what they could get to pay their margin calls.
I have personally been told by Chris Cairns, that despite what might happen in the markets this year, it won't stop Integra Mining executing its strategy and finding more ounces and getting us into production early in 2009. Their bank balance tells us so. Some might call the placement exceptionally timed and priced.
His thoughts are that there will be some short term stress but we will bounce back hard. Quality always does.
The volume tells me that most are still holders. Those trying to get out and pick bottoms are playing with fire. You can think about trading out because of what might happen overnight but at the end of the day, you get nothing done during the day and you spend the whole time stessing.
I still see IGR as a $1-2.00 stock at the end of this year. I don't really want to tell people that but all the research and the fundamentals tell me that this is realistic in 2008.
I have read so much literature over the last week about what stagflation and recession and bail outs do to the gold price that I am very confident that once the USD is hit and hit hard by all those that don't believe in its value any more, they will fly to gold. The 75 to 100 basis point rate cut tonight or within the next week will weaken the USD, add fuel to the inflation fire and so gold will gets its kicker.
I'm not being one eyed about the gold price, history tells us what is about to happen. Even the Hedge Funds are selling gold today because it's the only think making them money and covering for their losses elsewhere. SO they are doing exactly what all the margin players are doing, liquidating all their winners to pay for losses elewhere.
Once everyone realises what is about to happen to the USD, gold will be their only protection against their deflating investments.
When the gold price hit an all time high last time in 79/80, it tripled in the last three months running into its historic high, from USD300 to USD850. It went from USD64 in 1973 to USD850 in Jan 1980. That's the equivalent of gold in 2001 at USD250 and gold running up to ???? in 2008. You work it out.
Enough on gold, I expect an exploration update shortly, the first of the Reddale diamond drill holes to be released in the next few weeks and drill results from Salt Creek in fill and extensional drilling. They have quite a few rigs drilling away so that results should be out soon.
Hold in there, we'll be just fine and forget about tying to outsmart the share price, you'll pay for it later. Now is not the time to getting out of IGR, it's time to find some cash and get a whole lot more. If EL&C Baillieu think IGR is worth 62-76 cents at 1.2m oz's, I guess they think the valuation has increased 38% with the resource upgrade. Euroz also released a Buy recommendation at 57 cents. Fundamentally, nothing has changed.
AUD gold still above AUD1,000.
Regards
Kojasper
IGR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
