Which Investors Are Losing

There are certainly investors that are losing money due to gold miners declines. Some gold mining companies are doing phenomenally well, such as RIC.TO or IMG.TO to name a couple of examples. Not all are bad examples.

It seems that gold miners have very little responsibility to its shareholders, their principal creditor. The company dilutes the float, the shareholders then dump the shares. But this does not remove the obligation to their creditor.

But these are not unsecured lenders. They are people with an investment in the company.

While diluting their shareholders, gold miners anxiously chased the impossible, seeing the gold price as impossible. Well, the impossible happened, and gold miners are looking at being able to develop without having to issue any shares.

Wall St. Journal