gold stocks are going to take off this year and small players like sbs are way undervalued relative to ounces in the ground. sgc will be paying plenty for sbs's 48% stake in asmara. sgc's has, fully diluted 41 million shares and closed friday at $2.37. the canadian market values sgc's 40% stake in asmara at over 90million. sbs has a 48% stake and has a market cap of 30million aus. do the sums and you will quickly work out that sbs is great value at 10c and offers huge upside potential with limited downside
mitch
Gold rally not a bubble, could go on up
LONDON (5 Feb) - Gold's 37 percent rise in six months to 25-year highs, far from a price-bubble ready to pop, will continue upwards on renewed fund enthusiasm, analysts said.
The bull market may attract even more new money in the coming years, with potential for bigger price spikes, they said.
"Like a gorilla with a gun, gold can go anywhere it wants," said Peter Hillyard, head of metals sales, ANZ Investment Bank.
"With the quest for yield, the need for portfolio diversification and the huge appetite funds have for risk, all commodities are certain to rock for a lot longer. It's not a bubble about to burst."
Gold prices peaked at $573.30 a troy ounce on Thursday, gaining 11 percent this year on top of an 18 percent rise in 2005. The metal has more than doubled in five years.
But analysts say gold has room to go much higher. It is still well off January 1980's all-time high of $850, a level which would now stand at $2,100 after adjusting for inflation.
Many analysts have frequently revised price forecasts, such has been the speed and strength of the upmove.
UBS Investment Bank this week lifted its average price forecast to $560 an ounce for 2006 and $600 for 2007 from $520 and $500 respectively. Gold could trade to a high of $675 at some point next year, it said.
A Reuters poll showed last month an average gold price of $525 in 2006, up 18 percent from $445.05 last year. The metal was seen gaining further to an average $550 in 2007.
"I do not see any bubble on the gold market. Prices have been firmly supported by fundamentals. Most notably, changes in global liquidity have put upward pressure on prices," said Michael Widmer, analyst at Macquarie Bank Ltd.
SBS Price at posting:
0.0¢ Sentiment: None Disclosure: Held
