interest rates and gold, page-9

Choo

You have posted these stats or similar on HC multiple times. You are being cold, dispassionate and logical and are probably right. It all makes sense but the market seems to be taking no notice of you. Why, I ask myself? An answer may be that there are better goldies out there. FML is currently lacking excitement and certainty. It seems that all FML can do right now is keep producing and discovering. Without any substantial and exciting announcements the SP is going to stay where it is. Unless the quarterly contains some unexpected excitement the market will received it with an SP yawn. Will it make reference to a future dividend? no. Will it state that they now have resources of 1 million ounces? no. Will they announce a new venture? no. Etc. FML is a good company but a dull one.

Although the overall market has recovered this rise has not drawn in droves of new PIs, which one might expect to happen. PIs are nervous for non-market reasons, like where this financial world is going? They are bothered by the proposed 40% Henry tax, they are concerned that if Europe starts to implode on itself gold will be sold as part of their panic for cash. The world is in a shockingly unbalanced state, ignoring wars, the worst in history. There are reasons to be cautious and only purse real bargains and exitement.

Gold is a risky insurance policy in this market and not the only one. Small goldies, without extraordinary resources or unrealised opportunities, are right now unconvincing alternatives. This market is all about confidence, fear and excitement What makes this investment risk worth taking for me? FML is dull, and provided nothing goes wrong will remain dull and predictable. Given a year the outlook may change but unfortunately for now with FML I believe to get what you regard as a justified by the fundamentals SP, I believe, youll just have to wait.

K