''Back up the truck below A$2 someone posted. You are not wrong,...

''Back up the truck below A$2 someone posted. You are not wrong, especially in US$ or the Loony.

* This current situation is just the draining of liquidity driven. IMO the current share price, means nothing with respect to valuation in the medium term, but of course it all about one's costs base, especially for a short-term horizon. Trading ASX gold stocks is dynamite for this reason.

* SBM Medium term, all we need to go is delete the banks phone number off the CFO's speed dial so they cant loose there nerve in the pullback in the PoG over the next while and remain the least hedged mid-producer. Australian mid sized Gold Co management have been weak here in this cycle, many caving into bankers insistence on heavy handed puts as part of the laters lines of credit


* Looking ahead, we are not getting only getting QE V in the US, which is supportive of the PoG, but its better than that, we are getting special Fed ops - Helicopter Ben style this time.

* Longer-term, Carl Menger, founder of the Austrian School of economics was the first to explain that money is liquidity and that gold is the most liquid asset. Gold has served as the reference point of value since the origins of money and is that against which currency must be devalued to relieve debts.

* Before that though, the high current levels of gold speculative positions, which have been called right for the medium term, will loose faith in the short-term, and will be unwound, resulting in a PoG correction.

So I plan to buy them cheaper in the short term (not necessarily next week, as the SP500 correction is just 'the end of the beginning) when SBM in US$ terms will be very attractive indeed in the weeks ahead.