Good to know that you have great confidence in RF. I think you are right on that but my grudge on him is that he had done too well in buying over DCN (at ~$110M which is a highway robbery price. It included a fair amount of cash in the DCN account and therefore in reality it was for ~$90M if I recall correctly)!! If only he had paid a fair price, the converted GMD shares at current price would have been very profitable for me!!! Anyway it is in the past and lets hope that he can deliver (his track record indicated that he can) and we all need him to deliver.
Actually RF had initiated some hedging (very tiny amount) and that is a good way to protect the re-opening of the Laverton operation. Below is the June quarter report. The zero cost collars approach is a very nice way to ensure no loss of money (between the put and call transactions) while guaranteeing minimal gold price at $3,500/oz and a maximum price of $4,235/oz (can't complain if gold price reaches this value).
Anyway the bottom line is that gold price is going to rise and rise as US goes into recession (interest rate starts coming down potentially giving rise to negative real yield and lower USD exchange rate which are both good for gold as it is a hedge against loss of USD value). Once recession hit, FED will start printing money to re-suscitate the economy and this deluge of money hitting the economy is likely to cause inflation to spike again in 18-24months. This timeline align quite well with 2027 and by then it is possible that stagflation will hit US as in the 1970-1980 period. And if history rhymes, then gold price (gold as a hedge against stagflation wil be in demand) is going to rise and rise.
Above is just my thesis.
Cheers.
GMD Price at posting:
$2.14 Sentiment: Buy Disclosure: Held
(20min delay)