High River Gold Mines Ltd HRIVF

RE: markets

[Olderwisernow]

I do not think anybody could do much about the price of gold for more than a short term attempt. Why? Well the cost to mine is rising, can they stop that? The US dollar has absolute fundamental reasons to continue its decline (imo) and the rest of the world is not going to see a gold intervention as anything more than an attempt to keep them into this declining currency, thus it would be a gift to those with the huge dollar deposits. Thus I would expect nothing more than a shift of gold holdings, and the price to rise even faster thereafter. Is is actually hard to come up with a scenario right now for more than a trader induced pullback. The fundamentals are just too strong. And of course, there has not been a single huge gold find in over 25 years, and the current production is declining. Hard to see gold decrease with a world wide expansion of consumption, an increasing population, a decreasing supply, masked inflation behind massive money printing and loosening of credit. The mid caps are interesting when they have the goods, like HRG, because the value is going up faster than the stock price. You have to like that. They either get bought at a suddenly higher (premium) price, or their stock price rises on value of reserves, and they start to produce significant cash flows. It all means higher price. IF gold were to drop significantly, it appears only on potential way: depression. Do you think the evidence points to an all out avoidance of such an event, by inflating, dropping interest rates etc. If so Gold will really run. Stagflation: gold will run. Even recession may mean conversion of a percent of foriegn holdings by a large number of countries and individuals. This is an odds on bet, I see as about 80% up for gold and the likes of HRG moving up multiples over next18 months, and a less than 20% chance of any sort of sustained drop. Hard to get those odds in the stock market.imo