Re: Gold Shares Are Cheap
in response to
by
posted on
Mar 29, 2008 04:16PM
San Gold Corporation - one of Canada's most exciting new exploration companies and gold producers.
Agreed, Nolet, it is time for the juniors to shine. And it is not just us shareholders saying so... there is a disconnect between junior stock's share prices and gold that is being recognized by many analysts in investment offices as well.
What the price of gold will do exactly is hard to say...everyone has their opinion, and know one really knows. At the present, all the dollars being thrown at the sub-prime mortgage crisis recently has strengthened some folk's faith in the US dollar, so gold lost a bit of its momentum. IMO, throwing more dollars at the problem can only be a short-term measure, and only adds to the problem over the longer term - it further dilutes the value of the dollar. And that will come around to strenthening the value of other alternatives - especially gold. So, my opinion is that we will see another gold price rally coming up.
The timing of such rally is hard to determine, especially since this is an election year across the border. Those who make the economic decisions that supposedly control the economy and not going to roll over and fall asleep. Those who can pull strings will pull strings, I expect, to help things look like they are going to be alright, even when they are not. Perception is what matters in the political world, even if the facts say otherwise. However, eventually there won't be any more strings to pull, and reality will have to be faced - the US is so badly in debt, it cannot continue to hope that status quo will eventually bring it around. There will be further corrections between the dollar and gold, and gold will be the winner, IMO.
NLion