Nothing has changed. It is that simple.When I say nothing has changed, I am refering to the current state of the US and world economy, which got us here in the first place. The TV tout crew are completely out of touch and desperate to spin news these days. For a perspective look at the long term charts. Gold: it is trading high, and as to be expected when the short term money rushes in it gets very volatile. Fundamentals have NOT changed. Why? Costs rising, supply dropping, demand rising. Of course when you get paper trading, you get extreme volatility, especially when liquidity needs and profits are there. Get used to it.
Here: it is a buying opportunity. Why? HRG has the goods. It does not matter much whether they get a delay here or there, other than for the impatient shareholders. Sorry but that is a fact. What REALLY matters is the following:
1. Do they have the reserves, able to be mined at a profit.
2. Are reserves big and can they increase or does one expect them to rise?
3. Is the long term price of metals in an uptrend?
4. Is there demand, and a shortage of world class deposits available to be mined NOW?
5. What is the outlook over the next few years (not days, weeks etc) Is production scheduled to increase and at a profit?
To all of this I conclude, yes. I have not seen a single solitary fact contradicting this. Management,you either like them or not. If one does not like them you move to one of many other situations. I am ONLY interested in whether the potential, and likely outcomes as contrasted against similar situations remains postive. In this case I will be happy to acquire more shares on any continued slide caused by gold price pull back, or "analysts" comments. By the way, have many of you looked at these "analysts" track records. Slow, late, wrong. They are laggards, for whatever reasons. Just look at their recommendations.
Money is made, seeing AHEAD what is coming, not looking in the rear view mirror. I see temporary BS driven market upswing on the averages, then a resumption of a severe bear market, and gold going to new highs. Lets see who has this right over next nine months. As well, here: I see $5+ for High River in 2008.
I say buy on panic selling, and this gold pullback, as it may just be your last chance, (and a GREAT opportunity) to get into this and if you do not like this, other gold situations. Do not get fooled by the TV guys telling you it is all over for commodities, that my friends is a joke. Why? Real shortages, increasing economic long term emergence of BILLIONS of consumers says different, along with inflation pressures coming from loose monetary stance vs a stagflation potential if we do not get straight inflation. Small chance of complete depression as well.imo Either way, coupled with unstable world, promises gold continues to shine.imo
End game coming on all of this, over next 3 years.imo