another good reason to own companies that don't need to raise any capital. at these prices, you wouldn't want to be selling any equity. this is from peter grandich:

The selloff has been so extreme that Peter Grandich, editor of the Grandich Letter, lamented: “I have just recorded the single most oversold condition for gold since the great bull market began. Mining shares are also deeply oversold and juniors, well, the fire sale has become a nuclear detonation.

Many juniors shares have fallen to levels where it will be tough to continue without recapitalization as financing will be hard to come by for the foreseeable future. However, some companies have significant cash and their share prices can double or triple from these extremely low levels in rather short order.”

Once again, there was fresh evidence of burgeoning physical demand for gold even as futures longs are pitching their contracts overboard. Reuters reported yesterday that dealers are bemoaning “a shortage of gold bars in Singapore and Hong Kong as jewellers stepped up purchases ahead of religious festivals in India, the Middle East and Southeast Asia.”

And, “Gold prices might already be trading at oversold levels,” wrote Tobias Merath, of Credit Suisse. “Fundamentals still speak in favor of a recovery to $900 or slightly higher in the next few months.”

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