RE: The only good thing...I will answer why up.imo Costs will come down because they will work out the bugs moving into quarter three and be more efficient and have worked through some one time costs as well. Reserves have potential to increase on exploration over next 12 months. Prognoz is basically valued at squat at these price levels, so if the managment gets their thumb out of there *** they may show some actual value to shareholders over next while. Like most of these situations, things can change, and do constantly, especially in the mid stages when bugs are worked out, cash starts to flow and new more experienced people arrive on the scene. Many people here, who thought it was good at 3 now have an emotional response on what is essentially a bit of a let down in terms of the management short term.imo
What is more important probably is this however. The U.S is obviously in trouble, if you just step back and listen to the sounds behind those wagging lips on TV and at the FED. Talk the dollar up, but how long term do you keep it there? There are TRILLIONS of dollars out there. Middle East, China, India, Japan and all over the world people have been collecting them. Guess what, no matter what anyone says, they want to come home, or buy something or get real rates of return. So the FED talks and the dollar strengthens. Really??? How about for a minute, until folks wake up and realize, NOTHING HAS CHANGED. If the U.S. raises rates in any meaningful way, the market tanks, the economy gets worse not better and they still have all that money they have been printing. Why? Because fundamentally the U.S. is in decline.IMO Not unlike the UK when it peaked. Its not just peak oil folks, its peak U.S. time. Many will argue this, but to me it is the most obvious fact. Do I expect some sort of huge crash? Not necessarily, but it could happen. More likely a long protracted decline against the rest of much of the emerging world, who want what we have, and are NOT going back to subsistence and supplying the West with their huge out of wack standard of living. Thus, commodities keep getting more expensive in many cases, volatility continues, and various strategies are attempted to stem the shift in power. The longer the U.S. spends all its resources trying to police the whole world, the faster they go down.imo
Result: gold goes higher in a volatile world. Inflation probably stays high for a number of years, if not decades. Many paper currencies decline, with fits and starts and BS put out to make it orderly and less painful. ie Protracted declines for US dollar, and other currencies where the essential commodities are imported.imo
IF the price of commodities drops a great deal on this blabber. BUY It is as close to a sure thing as you may ever see in your life time.imo
Gold: it is getting more expensive to mine everywhere. Production is not going up. Potential for consumption to rocket is absolutely real. Thus WHY they are trying to talk it down. If the U.S. and other now enter the commodities markets to "attempt to control speculation" they will pull the classic error. Instead of going down, they will screw up the market and it will end up a disaster in terms of supply and demand, with prices rocketing on the mess they will create. It is without a doubt about as dumb as it gets, in lieu of past interventions and outcomes.
It is absolutely amazing how many people are sucked into time frames of micro proportion and shift minute to minute, day to day, in markets which are telling them much is wrong, and HAS NOT BEEN RESOLVED. And therein lies the REAL issue, and the outcomes.
They lie when it seems to be needed. THINK what they the gov. have put out over just the last couple of years, and contrast that with the reality! Housing- it was temporary, Currency - it is strong, Inflation - no problem Recession - not going to happen. Think about it before you get sucked in and then left when: gold continues up, not down. The dollar continues to flounder. Commodities continue to rise. Inflation goes up with or without stagflation as well. Thats reality. When I see real change, then I will change. To date, simple, it is not happening.
Buy gold, gold stocks and other commoditiy situations on any substantial pull backs. You will do very well over next years. Day to day. Its a game. Year to year -REALITY.