Hey Blacks,it's hard to predict exactly what's going to happen....

Hey Blacks,

it's hard to predict exactly what's going to happen. I think $0.75 is the lowest SBM will go for the time being - it got to that level a few days ago and bounced off it nicely. There's alot going on at the moment in the broader market that may impact on the SP for SBM:

1. Some of those other stocks you mentioned that performed well yesterday such as LGL are all down 5-6% today whereas SBM isn't.

2. The FED are meeting in the US and will be cutting rates which could further enhance the appeal of GOLD, however the market has probably priced in a 0.75% cut to rates so the USD may not take a huge hit when the rate is cut.

3. Most of the US investment banks are reporting their figures this week such as Goldman Sachs, Lehmann Bros and Morgan Stanley. Any bad news from these companies related to the Subprime fiasco could trigger another worldwide sell-off and the gold stocks may not escape from that in the short term.

4. Gold has come rather sharply down from $1030 yesterday so there's always the chance that it could correct further...

So all in all, I think it's best to wait on the sidelines for this week to see what direction the US takes...but for what it's worth I am invested in this stock and will stick with it for the long haul. I've been following Gold for several years now, I think when it was at $400. Now it's $1000. The trend is definately up. The stocks are definately lagging the price in bullion itself but that'll change once more certainty returns to the market.

If you're a long term investor, there the downside risk from here is minimal compared to the upside.

Clear as mud?