Rick Rule says stocks are stupidly cheap SGR has to be the most ridiculously priced stock. Rules previous statements about SGR being a capital intensive operation deemed unworthy for ownership flies in the face of hypocrasy when applied against his latest outburst about stock being stupidly cheap. SGR has gold reserves which are not conscious of where the price of gold is nor the price of the company. In the end, as gold encroaches upon being a representative basis against future currency valuations, the present position of SGR will be releatively insignificant when weighted against the valuations of its assets both in the ground and above. Once paper currency is on the back burner and gold comes to the front, and this is the reason why the price fluctuations are taking place after its significant rise, paper holders like Rule will not have the same level of wealthe leverage like they do now and the tables will turn towards those who hold the physical.
The rule right now (no pun intended) is to load up on shares of any company that has significant assets in the ground and are trading at levels would nornally only reflect pure exploreres still having only storylines in reserive. This suggestion obviously applies to the medium to long term investor obectives but as the markets are at least a year or two away from any major rebound, makes the strategy all that much more practical.
SGR has future gold reserve levels at possible two fold increases with further exploration so if you do the math, and take into consideration all corrections and alternative market forces which have kept the price of gold down, which wont last, it makes sence that a major increase in stock positions such as San Gold will be worth the wait. In the mean time if you need the money, dont sell, just get another job and live a modest existance and watch and wait.