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Relax. You couldn't have invested in a better stock and better sector. Some countries and some people may have become poorer but there still many who are flush with cash and they are holding exactly that for the time being.
The desire to grow their wealth doesn't stop with the rich.
It just mean that they are more selective where they put their money. Not many people would invest in the retail etc and where is the growth sector---GOLD.
The depreciating paper money has to find a home that is a true store of value.
The possibilty of CJO not being able to raise the fund for the mine construction has never ever cross my mind. The Asians are not poor. Show them a venture where they can make a decent return and you find them outside your door. So many producing gold miners are rolling in cash. Guess where are they looking to invest their money? It is hard to find a good sector to invest your money beside gold at present.
Why gold mining companies and not physical gold? Answer is leverage.
Assuming you bought physical gold at $900/oz and it went to $1500. You made a return of 67% on your profit.
Assuming you invest in a gold mine where the cost of mining per oz is $600. Selling the gold at $900 makes you 50% profit. But when the price increases to $1500 and assuming your cost remains the same, you are making a 150% return.
Imagine how much more is CJO worth now, considering their past valuation was based on $900/oz.
For that reason, I don't keep any gold bars at home. They are still buried in the ground, waiting to be mined.