Why you buy when "analysts" say sellWith these gold mining situations, where most of these analysts now are looking at all the wrong numbers, in my opinion, they often are giving you the buying opportunity you are looking for. I think High River is a perfect example of this. Why would you sell down a company with expanding gold, silver and other reserves, coming on with higher production and cost escalations rising like all others, but well within numbers whereby increasing gold and silver prices will far more than offset cost rises to date imo. Because there was a little bump in the road, and timing was not perfect???? Gee that is really something new in this sector.
Staying focused is what counts here, and believing what many still do not see. Gold is NOT going down much at all, it is probably just getting going. High River has the goods.
So lets say, some hedge fund shorts these midcaps, and to date it has worked. Woopty dee. Just give it a little time and they will get creamed as I see it. Why? Value, its that simple, it ALWAYS asserts in the end, and NOBODY is bigger than the market. What do I mean. Well say you push the price of this or some other situation down, and it does have the reserves, and production is not a ten year away dream. The shorts, or sellers, push down the price. Meanwhile the REAL mining guys, from wherever, who KNOW THE VALUE, will eventually surprise, if nobody else catches on regarding assets availlable at a discount, BECAUSE they can make money on them. If they bid, game over for shorts, no matter who they are. And are those big mining interests out looking for reserves to replace their current dwindling ones. You bet they are.
So consider: if you believe gold and silver even stay in this range, buy these situations. If you believe gold and silver are going up higher, buy these. If you believe the price of the metals is coming down big time, then yes sell.
Simply put: I believe the analysts from many of the banks are COMPLETLY wrong of late, they are sheep, and lost ones at that. These guys were asking me to invest a couple of million with them about 9 months ago, and I asked where they were looking to invest: guess where, in the FINANCIAL SECTOR. I am NOT kidding or feeding you BS. These guys are first class sheeples. Needless to say, I passed, and I did tell them how I saw it: said I was going to buy gold etc. They thought it was too risky. Get it. Too risky. They can't see the forest for the trees. Risk to these guys is surrounded by only thinking big companies are safe, and where safer than banks and financial sector at that time. Now they think folks should sell the gold stocks, in many cases. I think they are totally wrong again. The way I see it: precious metals trend up, those midcaps with real product are going to get taken out, or move up sharply, or both. ANY major pullbacks are GIFTS to you as investors IF you take advantage, and buy instead of getting lead around by guys who over and over are late and wrong. So buy when the opportunities arise, AND be willing to wait a tad. The value is not going away, in fact it appears to be going UP not down. Think about it, do your own dd, but it just could be this simple. Buying these assets at a discount, pays you big in the end. Do you think gold supply is going up or down? Demand up or down. I say demand up, supply continues down, and proven reserves get bought by smart money and companies which need to keep mining same, as that IS their business. What choice do they really have, if they want to be producing in a few years???? That is how I see it.