opinions before 31 dec 2011, page-3

I think you have to separate short term market shocks, impacting on the share price, from underlying value. Any analysis of gold equities, mid and small cap, in the last couple of weeks, let alone today, will show a pummeling of the share price. The metrics supporting underlying value have not changed, but the rush for the door quickly becomes a self fulfilling prophecy with stops being hit and panic as to "how low can it go". Traders, particularly, can be cash stressed and need out quick, and if buyers are nervous price drops are fast.

I have held RSG a long time. I'm a believer, and what's more there's plenty of runs on the board now (have a look at the most recent half yearly). Sure, there are lower cost producers (the big one for RSG) but much of this is a function of an ambitious, and now successful, commissioning of Syama. RSG is dedicated to a rigorous cost efficiency program and have the smarts to deliver. They have a massive resource base and are one of the best prospects for a strong gold market. And that, OP, is your biggest consideration. If you believe Gold will run, then RSG will be a strong beneficiary. Volatility is part and parcel of the journey and many traders have enjoyed that game. I am confident $ 2.00 by 31.12 is a safe play, and that is with Gold priced @ 1400 +.