Just been reading how Goldman Sachs are holding less short positions on gold than they have in the past two and a half years, also advice on buying into gold juniors now. They were attempting to talk the price of gold down but it looks like they have given up!
The CRK share price is jogging along the bottom but on very low turnovers.
I bought a parcel the other day in exchange for a bag of peanuts.
It's times like these when you see the share price going down and down that you wonder if you shouldn't sell just to preserve what's left of your capital, but really it's about exactly the time not to sell.
Gold is around a thousand Australian dollars an ounce and likely to go higher.
The US dollar is imploding and their financial institutions are very shaky.
What would you do if you were holding US dollars? I'd want out and most likely into gold. The demand for gold is likely to increase on panic buying.
We know that CRK has five million ounces and they are at mineable grades.
Bevan will release the results of the latest drilling shortly and there will be another swag of gold.
When they release the latest estimates of inferred, indicated and measured, that is when you can work out what the shares are really worth.
You won't be the only one doing the figures. You can bet a major or two will be doing the same. We are fortunate that Frank and Bevan, who by the way haven't sold a share during this downturn, don't need to sell out. They won't let the assets go for less than the market price. The majors are going to need to replace the gold they are selling at these high prices and they will be loaded with cash to be able to buy a junior or two.
The advice I give to myself is to hold on regardless. I am not qualified to give you advice!
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