some recent thoughts
I would have bombarded you with many articles and thoughts in the last few days, but lucky for you, the site was down.
Here are the three points that I can recall, the rest must not have been important.
1. an article pointed out that it may be more favourable to own a gold miner that has reserves ready to go into production three years from now over a gold miner that has reserves ready to go into production at the end of this year, assuming you are bullish on gold. The reason is that the miner producing later this year is selling gold at $1200.00 an ounce whereas the miner going into production three years from now is probably selling gold at $1700.00 an ounce. Makes sense to me, I had not thought of that.
2. Volta as a play on the emergence of Burkina Faso as a politically stable and profitable location for doing business. It has been pointed out many times that Volta's share price has a significant discount to it because it is located in West Africa, and because its flagship property is in Burkina Faso. If Kiaka had been situated in Quebec or B.C. there is no doubt the sp would be multiples of what it is. If you believe as I do that the risk of political instability is not as significant as the discount that has been built into the sp, you can profit from the ignorance of others. Information is power and while Burkina Faso is not Quebec, the signs are that the government is welcoming the mining industry, operating in a democratic fashion, and the government in power seems securely in place, and will be increasingly so as the people reap the benefits of its new economic power.
3. Here is an article I liked, which points out how difficult it is to time the market to short it. It points out that Eric Sprott is a market bear, yet he is not shorting the market, he is buying gold.
https://www.kitco.com/ind/Thomson/may282010.html
It should be an interesting week. There is no doubt that the overall market is at a scary juncture and there is more and more talk of re-visiting March, 2009 lows. I think we will all agree that there is a good possibility of some news from Volta this coming week.
I think there are many who have chosen to sell in May and go away. I may hold over the summer and up to November 22, my birthday. I read that Charles Oliver (of Sprott), an early supporter of Volta, said he will shave his head if gold does not reach $2,000 in two years.