nothing borderline is even worth considering in this market whether it be gold or any other asset.
buy quality with a strong balance sheet and no debt, end of story!
Yes, totally agree with that.
There's an old argument I've read, that you are probably applying wealthcc, that the borderline operations have the the greater leverage to an increase in the gold price.
At $800/oz gold, Company A makes a profit of $100/oz, while company B makes $400 /oz profit.
Gold rises to $1,600/oz, and company A's profit goes up 9 fold, while the more efficient producer, company B, sees its profit go up only 3 fold. Therefore the share-price of the inefficient company should increase a multiple of the increase of the efficient company.
Not buying it in an environment of credit starvation, and future return of high diesel prices. Probably there's a better chance of finding good management in companies that are currently in profit health too.
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nothing borderline is even worth considering in this market...
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