FishfinderGood pick up! I agree with you. 'Unrecognized'...

Fishfinder

Good pick up!

I agree with you. 'Unrecognized' definitely wasn't the best word to use.....LOL

You have explained the situation well.

Microman

A nice post containing some very interesting points.

I don't pretend to have all the answers, because clearly I don't - in fact no-one does, least of all the puppet media – or if they do, they are instructed not to go there!

An example is that almost no-one is heralding a bull market in gold that has consistently made year on year highs each and every year for the last 8 years. No other market has performed as well, and during the GFC, it outperformed all other sectors simply by holding its ground while devastation abounded everywhere else.

If it was Wall Street performing like gold, the consistent gains and the strength of the run would be flooding the air waves and the print media.

I have added some comments to what you have contributed below. Your thoughts in black, my comments in blue.

---

- The first is that the more we wait and continue drilling, the further capital will be needed, hence more share dilution.

Not when we are only talking say 6 months or a little longer, given that we have already got some cash that could be spared for some more drilling.

- The second point is that the longer we wait at the current stage in the company, the more chance that IGR will be taken out at a lower SP.

While I agree that we need a higher share price, in this market that is just as achievable by 'marketing' what we have actually got to the investing public, and by finding some of those new deposits that CC confidently predicts are out there.

Don't forget we nudged 70 cents last year when the gold price was lower and the company was nowhere near as advanced as it is now. And that was simply because of improved investor sentiment for the sector.

As for being taken out, when our number comes up, that will happen no matter what the share price is. After all, there are some BIG fish out there with BIG appetites and BIG check books. One of the best defences against an opportunistic takeover is a knowledgeable and supportive share holder base, so if we were to explore for a little longer, and the intention thoroughly explained to the market, waiting for much improved sentiment towards gold could very definitely play out in favour of the company – especially if the predictions for gold do come to fruition over the next few months.

- The other thing which concerns me at present is that everyone is talking about the certainty of a higher gold price. Just wish it was so.

Me too, but take a look at the longer term gold chart, and try and understand why it is so unsustainably cheap. Unsustainable in the sense that gold now struggles to be produced profitably at current prices. Clearly something has to give!

- In my line of work I am often in Asia and the Middle East. Let me say that gold sellers in Asian countries and in Middle Eastern countries are all complaining of lacklustre business. That is...less people are buying, and in fact in India people are beginning to sell their gold jewellery to gold merchants because it is worthwhile at current prices, esp during the global crisis. In the UAE and in Saudi Arabia, Gold souks (markets) are beginning to band together to collaboratively reduce gold prices to protect their businesses. Again sellers are complaining that the business of selling physical gold in the form of jewellery, ingots and such is really bad because of the cost, the global crisis and the lower price of oil.

Microman, jewelery demand while important, will definitely not be the driver of gold when it eventually is unshackled and allowed to appreciate. The BIG move in gold will be investment and currency related, with the most powerful players and nations in the world looking to protect their wealth.

In times of economic uncertainty it is the asset of choice and it has been that way for centuries. Investment Banks are turning into buyers rather than sellers, the likes of China is building its gold reserves and calling for some gold backing in a proposed new world currency, Germany wants its gold back from the US, the ETF's are being recognized for the sham most of them are. (ie paper gold with no physical backing or at least obscure and unreliable proof of backing) and the COMEX is being recognized as a sophisticated means used for gold suppression while regulators look the other way.

It is also no coincidence that the US Treasury has suspended its gold coin program, which I guess is fair enough. Why would you squander a valuable asset by allowing the citenzry to pick it up at current give away prices?


- Yes believe it or not...the lower price of oil is affecting Arabs and their purchasing power. In the UAE Abu Dhabi is pretty much the only area unaffected by the lower oil prices, but the sheiks there have been so busy bailing out a Dubai that is on the verge of bankruptcy that even Arabs in Abu Dhabi are beginning to wish the prices of everything including gold drops big time.

We needn't be too concerned for the difficulties faced by the Arabs. Peak Oil will come to their aid with drastically higher prices as soon the world resumes its growth path as the green shoots develop into stems. This will also provide another driver for gold as higher oil prices will usher in higher gold prices.

Gold and oil are intimately related although they don't necessarily move in lock step, as evidenced when oil was ramped to $140 not so long ago. The OPEC oil cartel will nevertheless ensure that the relationship remains in tact, as while selling a valuable but diminishing asset like oil, they will make sure that the proceeds will be locked into another asset that will definitely retain its value.

There are some interesting snippets in the article below that highlight the interconnectedness between oil and gold and a need for the GCC (Gulf Co-operation Council) to protect their collective interests.

Gulf Nations Will Break Dollar Peg With New Currency in 2010

- My question is if the gold cartel can suppress gold, then what can an oil cartel do to the price of gold to keep its citizens happy? Believe me...arabs love gold, and if they are complaining about prices, then something is amiss.

The point here microman is that the Gold Cartel have indeed been able to suppress the price of gold, historically, but their days are numbered now.

We are entering a brave new world with enormous ramifications for the world's financial system. Hundreds of Trillions in US Government debt and trillions in domestic deficits can no longer be ignored by those propping up the USA's super inflationary and grossly irresponsible monetary management. China especially!

The problem the US now faces is twofold.

1. A reduction in available physical gold to throw at the markets.

- Unlike paper gold, physical gold is finite. You either have it or you don't. It wouldn't surprise me if the Fort Knox vaults are empty, or if there is some gold there, that it is encumbered by the claims of others.

2. The gig is up (well almost up)

- It is increasingly evident what the US has been up to with their so called strong dollar policy – which effectively amounts to suppressing the gold price by whatever means possible.

How many times have we heard the line "The IMF is going to sell its gold" after every unexpected rise in the gold price?.....LOL.

And how many times have we watched the gold price being smashed on monthly gold option expiries, option roll overs, on end of quarter balancing, on bad job reports, on bad inflation reports, on bad housing figures, on poor industrial production figures, when major Banks collapse (eg Bear Stearns), while the President speaks, while Greenspan or Bernanke speaks, on poor balance of trade figures, on US treasury officials visiting China, while Bank Bailouts are announced, when Chinese delegates visit US Treasury Officials in the US (like recently for instance), during G7 Summits, while Fannie & Freddie receive bailouts, during G20 summits, while Treasury tenders are being invited (hmmm....didn't we just have one of those), when major car manufacturers file for bankruptcy (ie GMH and Chrysler) etc etc etc...

In fact gold has acted 'counter intuitively' for quite some time now, always heading in the opposite direction to what commonsense would suggest. Government spin is a very powerful tool, and is probably the main instrument used for propping up 'substanceless' and 'irresponsible' US monetary policy. Suffice to say that the 'Emperor' really could do with some clothes these days!

Powerful nations in the East have been taking advantage of the cheap gold being made available, and the entire world is now rapidly catching on about what has happened as well. The US is being exposed for the credit junkies they are, and the suppliers of credit are finally saying "enough is enough".

China and Russia are well aware that "Those who own the gold make the rules" and will be happy to exploit the US's now chronically vulnerable economic condition.

I guess the main point of my ramblings is that what I believe is unfolding, is the ushering in of a completely new dynamic than what has endured over the last several decades. And Gold is set to hold centre stage while unbacked paper currencies, particularly the US Dollar are rapidly losing favour.

The loss in faith with paper currencies can only be restored by a return to reality in economic thinking, and a return to real wealth generating pursuits by governments such as encouraging personal savings, pruning back to ensure domestic surpluses, encouraging businesses to produce things that are actually needed and can be sold profitability to overseas customers, value adding natural resources before exporting them...ect etc...

Along with more traditional nation building economic activity, it will be physical Gold, or real money that will help to play a pivotal role in restoring sanity and value to our complex and much abused financial system.

Certainly, Greenspan has a lot to answer for with his artificially low interest rates and suppression of the gold price!

Anyway, there are a few 'off the cuff' thoughts for you to mull over MicroMan, as background to why I believe that stocks like IGR will become extremely attractive investments.

Cheers
Nev