the games up, page-77

"gold has now risen above 1850 but the junior gold stocks have gone now where and even backwards!! bizarre"

It might seem bizarre, it might even be bizarre - but it happens - this isn't the first time.

In fact some of them are moving - and I might be wrong but I think this time is a bit different -- they are moving much earlier than I expected.

But then this crisis is different - and much bigger than in the past.

If the pog stays anywhere near where it is or higher and or companies begin to forward sell 'some' of their production - then mid tier and top tier producers are going to be making a hell of a lot of money in the coming quarters - right from now on.
Costs look like they will be contained as diesel is down even though some other prices are up.

The end result will be for well run producers - BIG BIG PROFITS

The markets won't ignore that - I don't care what the state of the world sharemarkets is - if these companies even think about paying out some excess cash to shareholders - shareprices will rise - and they will probably leave the rest of the market in the dust ---------- as it was before.

We are in for a few interesting quarters - starting right now.

ie. Once the cash begins to flow - it cannot be ignored.
Deep value can outlast the most patient of investors - but only until the cheques begin arriving in the mail - then the argument stops.

ps, there are only a handful of such companies in Australia - they will be the ones who climb in the thousands of percent like the previous times - I have no idea what the specs will do.

Have a great week

Pinto