A message, from Barn Breath Hello everyone,
Barnbreath would like to contribute the following post, via lil' ol' me, so here it goes, ladies and gents:
The POG is now UP $ 66 on the day, and it ain't over quite yet. This, however; is only part of the story!!!
You see-----
At 8:00 in the Anti-Meridian, per KITCO, the POG was actually DOWN $ 17 approx.
SO
The increase in the POG can really be viewed as up ( $ 17 + $ 66 ) = $ 83 Dollars an Ounce!!!! What a difference a day makes.
There is one IMPORTANT caveat to remember. Today is Friday, more importantly, JUNE 1st. That means, if you check the 'small print', that the POG price base has changed, because we are now in JUNE. The POG that is being reported NOW is for AUGUSTdelivery compared to that of July, as of just yesterday. It is always, me thinks, 3 Months in advance----- hence----June, July, and August.
SO
You see there IS a DIFFERENCE!!!!!
STILL, that being said----
It is really good news, but us Gold Bugs must be in the "VAST MINORITY". When you look at the tickers on BNN, everything else is in the RED----except the POG, and the POS. So whilst we 'cheer', there are a TON of people in utter disbelief and who are grieving. Except the car and truck drivers, as the price of a barrel of
oil is down roughly $ 3.50.
AND
Have we learned anything 'new' today??? NO---a resounding NO !!! The big mining/producers are, like the POG. UP bigtime. IE. ABX and G are up like $ 3.50 to $ 4.00 per share----some more than others.
AND
What about our junior exploration stock? Before I started typing this, GCU was up ONLY 2 Cents. It is "par for the course", the miners up first, and immediately, tracking the increase in the POG. The Juniors follow but LAG---"Check U Later".
What is really amazing is that the JUNIORS do NOT PARTAKE-----Especially when you think of it THIS
WAY----"the Barn Breath WAY". What are we valued as??? Juniors are valued by their POGIG number-----if you'll remember----the Price of Gold in the Ground!!!! If you take the time, using the Dundee Wealth Management method, you'll come up with a POGIG figure of, believe it or NOT,-----UNDER $ 35 per ounce. Hint----it is, per Barn Breath MATH (O.K., YES, I admit it---the OLD MATH, sorry, VERY OLD MATH)
closer to $ 30 than $ 35!!!!
Think about it for a while. It is RIDICULOUS. ABSOLUTELY RIDICULOUS!!!!!
Today the POG went UP, let's say $ 70 per ounce. I like being conservative.
GCU's actual POGIG, as valued by the market forces/investors is 50% less than that---say $ 35 per
ounce POGIG. Again being conservative! SO, since 2 times $ 35 equyals $ 70----if GCU was
purchased by a MAJOR YESTERDAY, using GCU's POGIG, they would have gotten GOLD CANYON for FREE, and also doubled their money in less than ONE DAY!!! That's because GCU, POGIG wise cf the POG, just went up the equivalent of 200%!!!!!
You may call ME "CRAZY", O.K., forget the MAYBE and add the adjective "REALLY", -----------BUT------- as you can readily see from this that Gold Canyon (and some other juniors) is EXTREMELY UNDERVALUED.
The Gold Mining/Producing Majors have it ALL their way, and although they appear to be crying and
complaining----they are----but they are doing so "ALL THE WAY TO THE BANK"!!! They complain and point to rising mining costs, but in reality, they have NEVER made so much money, BECAUSE of their MASSIVE MARGINS---check it out. Why should they even bother with exploration and the risks therein? All they have to do is let the JUNIORS do it ALL for them, and then mearly pick off the cream of the crop, like GCU, for PEANUTS, compatatively.
That's why the big boys, like Fraser Mac and GMP, STILL have the price targets they set, and which they
haven't revised DOWNWARDS!!! GCU has advanced forward tremendously since these price targets were made, and GCU is being very aggressive with their drill programme(s).
I think it is the right move by GCU management tomake the moves it did by adding the heavy weights
Akiko did to GCU's Board of Directors---it shows that she is serious about what GCU has and about
planning for going into production. It puts a lot of added pressure on the Miners, that IF they won't
step-up BIGTIME re a buyout, GCU will go it alone, or perhaps with the help of a Japaneese Investor?
HEY, what do I know---I'll tell U---"NOTHING", as all of you already KNOW!!!
It is important to also observe that NOT ONE of the major analysists who initiated coverage on GCU,
have EVER decreased their price targets. In fact, in light of the work and results GCU has produced,
many, if not ALL of their original price targets have been updated UPWARDS----some, a COUPLE of TIMES!!!
Now you may NOT AGREE with my TREE-TOP 'logic', O.K.---WARPED LOGIC, but it gives you something to ponder on a rainy day. ALWAYS remember-------EXTRAPOLATE.
NUTorious as ever,
Barn Breath
P.S. My untimely demise has been greatly over exaggerated!!!!
AND
P.P.S.S. My associate, INTI, wants to say "HI"as well. There, happy now Inti?
P.P.P.S.S.S. A new record for "PS's". A little birdie told me that GCU now has over 60 employees up there
working at Springpole! Another record. And, by the way, that was a reliable birdie---as birdies go. Must be to FLY that far up in the Tree!!!