GREY:GRFJF - Post by User
Comment by
Orwellon Sep 21, 2008 3:17pm
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Post# 15473382
RE: Attn Greeneggs
RE: Attn GreeneggsLook at the U.S./Amex listing, the stock did not collapse at the end of the day.
Arbitraging will pick the price back up.
If WGI is falling out of the index, I'm not sure why?
Regardless, this is a good buying opportunity, there are only so many chances to get back into the gold stocks at fire sale levels. All of the seniors and mid-sized have started a good leg up.,
Here's the BIGGEST reason to invest in WGI -- it is already producing. Right now there is a CREDIT CRUNCH, so juniors will have a difficult time getting 100,200,300 million financing to start up their mines. Startup costs are also soaring.
As such, this will limit the oncoming supply of gold, and boost the stock prices of companies already producing.
As gold hits the roof during this U.S. crisis, the investing food chain will go from senior producers to junior producers. I believe the junior explorers will have the most difficult time unless they have amazing world class deposits with low startup costs. As such, the radar screens of gold stock investors will fall onto WGI when the continued stock screening efforts of investors reveal how undervalued WGI is.
O.