Bendo old buddy!I reckon you have got the cart before the horse...

Bendo old buddy!

I reckon you have got the cart before the horse or is it the chicken before the egg or some such thing?? Damn. I'm confused....LOL

Don't tell me you are contemplating selling one of the better gold juniors before it has even given birth to a mine yet.

If a take over comes any time soon, the response to my way of thinking would be something like "Urinate off you illegitimate sons of female dogs" but I would probably use the P word and the B word and the other female dog word.

Gold is headed substantially higher. It could even go ballistic when the world finally wakes up to the hoaxes continually played out by our puppet masters ably lead by the US and its bully boy Banks together with the FED. It's slowly happening in any case although you will hear it last if you are waiting for advice from the establishment media!

None of the problems that caused the financial crisis have been solved. The people who put us deep in financial faeces, are still in charge and are being paid bonuses for their troubles. In a world floundering in debt and toxic assets, we have simply used more debt and artificial money creation to try and float ourselves out of trouble.

Deficits and bailout packages are now measured in Trillions when not so long ago Billions were par for the course. The green shoots sprouting in the manure of accounting gimmickry, with bad assets being allowed to be valued at whatever they needed to be to balance the books of decaying bank balance sheets, is an interesting form of Government spin. But in reality, it is a sad and diabolical situation. Yes, it's working for now, but don't hold your breath.

If gold goes to $2000 (and it will), there is nearly an additional $1000 per ounce of profit to factor into the equation for IGR. Two million ounces in the ground at $2000 per ounce represents an extra $4 per share assuming 500 million shares.

Gold at $2000 is actually below what it should be in inflation adjusted terms. It should be closer to $3000. The reason it hasn't performed is because the US government needed the illusion of low inflation to assist with keeping interest rates low. Sitting on gold has been an integral and essential component of the so called strong dollar policy. Soon to be referred to as the strong toilet paper policy.

At $3000 there is an additional $8 per share for IGR, and at $5000 there is an additional $16 of value per share, based on current resources. Simplistic I know, but we shouldn't be limiting ourselves by the thinking that has applied over the last 10 years. There is a paradigm shift happening - Hmmm...Gold is up $14.50 as I type – and when strong international entities eventually through desperation and abject frustration try and protect themselves with gold, the impact on such a tiny market will be enormous.

Keep in mind that the Comex is a charade. It is rigged by the BIG banks acting as agents for the US government. If forced to deliver gold in quantity, the Comex will seize up, as the gold simply isn't there. There is a stack of rotting derivative paper related to gold however, but that is rapidly going out of fashion.

There is enough ill feeling being generated in the rest of the world about what the US has done to world economics with its lying, cheating and stealing that there will come a time when their bluff will be called. It won't be pretty and gold will sky rocket in a dash for safety.

The paper currency game is essentially a CONFIDENCE game as there is no backing whatsoever for the paper that is created via a computer click. In the absence of strong economic performance, Government Spin is all there is left to act as support, and Government Spin is wearing pretty thin these days.

Good gold stocks will become like the Banking stocks of old, bought for protection, capital appreciation and the prospect of good dividends.

It would be a sad day for shareholders if an opportunistic takeover was to succeed in absorbing IGR's assets into a bigger entity, possibly saddled by hedging debt or the like. The problem we would face is where to put our paltry gains? Good gold stocks aren't all that plentiful and in any case, good resources of gold in the ground are hard to come by.

IMO, it is far better to try and resist predators at this early stage of the company's evolution and to support it as it becomes a major player in the industry. Once into robust production supported by a strengthening gold price, there is enormous scope for future exploration not to mention picking up other quality assets through a strong balance sheet.

So Bendo, what would I take?
Hmmm, do you think we could get 50 cents....LOL.

Nah...I will be resisting to the bitter end and instructing management accordingly. I have waited too long than to cough up my holding in a quality company at the first opportunity, at what would be a pittance - what ever price was actually achieved in the current market.

We need to understand that GOLD has a very big future in the unprecedented financial chaos that we are now faced with.

Cheers
Nev

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