Cast your eyes forward and imagine what the future holds just two years ahead. My own view is that the current oil price shock and other factors will incrementally change the way we live, and result in conditions which are actually favorabel for gold miners, and for us TDC investors as follows:

Price of oil: High now and for a while yet, but are having an effect that should increase fuel conservation at the indivividual level as well as in organizations. More cops on bikes, more commuters taking car pools, more working from home, mass transit etc. The hich cost of transportation / fuel should result in people making those changes, which take time, but down the road result in less consumption. Suppose this means that deman destruction at some point brings the price of oil back to the $100 to $120 / barrel.

Inflation: It will take years for this price shock to work through the economy, truckers are hurting now but eventually these increased fuel costs will work through the supply chain and be passed on to consumers. So inflation rises and this creates insecurity, hoarding, and pressure to spend more money now before it is worth even less. So more inflation. This pushes price of gold up faster and faster.

Investing sentiment: when the funds get into gold big time, and junior exploration companies, this will be a major shift as each of these funds, and much of the cash on the sidelines, will have to compete for the shares available in the gold sector. Bidding wars, strong share values, increasing P/Es etc will accelerate the success of any good gold producers.

So, taken as a whole, we may be facing very high gold prices and moderating energy prices by 2010, when the construction of a mine in the Yellowkinfe Gold Camp may be in full swing. Hang on to your shares, and don't give up. We are past our nadir. It will still take time, but we will have more and more reason to feel confident.

Nice things will happen, like short sellers getting burned. Like the nay-sayers and bashers dissappearing from our bulletin boards. Like solid news and progress taking shape. Like investor analysts giving buy recommendatiosn. Like a listing on the TSX. Like that nice feeling, when you look at your portfolio solidly in the black and consider takign a little profit to buy some toys. And oh yeah, those toys are not selling well these days...so you'll get really good sucking up from the sales person, and can push them into giving you more and more to make a sale.

For example, I am going to buy a 2008 Toyota Sienna next week. The salesperson offered to pay for my airplane ticket from Yellowkinfe to Edmonton, to pick me up at the airport and to kiss my ass for the sale. Nice position to be in. That's how it can be for gold bugs as we ride the coming wave while other forms of investment continue to stink.

good times

SKELEG