Eric Sprott made an interesting comment on his weekly podcast...

Eric Sprott made an interesting comment on his weekly podcast this week about reserves in the ground .He indicated that 10 million ounces in the ground was worth between 500-1 billion dollars .As far as I can tell DEG is nowhere near that number .He has several favorites which he often talks about ,companies with that level of potential reserves which are worth significantly less than that and those explorer companies are the ones that he buys hoping to make 5-10 times his money .He is, I think probably the most successful resource investor in this space ,buys low and sells high .Not the opposite .Deg of course was that company at 5-10 cents ,not anymore .Many explorer companies had significant corrections last week making some of them good buys ;not DEG in my personal opinion .
To suggest as someone did here that because DEG was able to raise 100 million and that meant it was a good buy because “sophisticated investors” are putting money up is patent none sense .Just take a look at Great panther ,they have had three capital raises over the last 10 years each coinciding with the peak in the stock ,the first raise was at 4$,the second 2$ and the third around a dollar .
”Sophisticated investors” can make foolish investments just like the rest of us .
Someone else made a comment about “tulip mania” not being relevant to gold and gold stocks .Not so ,tulip bulbs were a significant and valued commodity in 17th century Holland ,more so than gold .Bubbles exist from time in all commodities ,its the nature of markets .The skill is to know when to buy and more importantly when to sell .The greater fool theory sadly means that the majority of investors loose money and only the few who got in early and sold out make a lot of money.
I am not sure ,but I would think that DEG is probably in the top 10 worldwide overpriced gold explorer stocks right now .That of course doesn't mean it wont go up more ,irrational exuberance can take things up to ridiculous valuations .
This all represents my own personal opinion ,which might very well be wrong .