RE: nervous weekend aheadWell Argonaut Gold's Castle Mine is very profitable at a grade of 0.4 grams per ton and a cash cost of $450 an ounce so gold will have to correct an AWFUL lot for these mines to shut down. The price of gold could drop to a thousand and all these low grade mines would still be great cash flow producers. Our deposit is averaging about 1 gram a tonne so the price would have to collapse to threaten its success. Not to mention the fact that the ore starts at surface so initial start up costs will be very low. You guys can try all u want to paint a bad picture but the only way gold and precious metals and the shares of those that mine them will suffer any real set back is if all the politicians and bankers in the developed world (ie US, Europe, Japan) suddenly choose to bite the bullet and implement DRASTIC spending cuts and MASSIVE tax increases to fix woefully imbalanced fiscal ledgers. What are the odds of that happening? ABSOLUTELY ZERO because politicians want to get re-elected and the electorate is like a petulant child and will never vote for a person who threatens to take away the candy. And the bankers? Well they HATE losses so they will never write down all the bad debt and cleanse the system unless they are bailed out by the government and that just leads to more money creation and higher gold prices. The western world is now headed down the same road Japan has been on for two decades since they had their meltdown at the end of the 80's. By propping up a dead banking system they have prolonged a recession for 20 years and now have a debt to gdp of 200%. The only reason they have kept afloat is all that money came from their own citizens who are HUGE savers. That is not the case for Europe, England, and the USA. This game is heating up and the cracks are starting to appear as increasing bond yields attest. The endgame of the era of fiat currencies with no asset backing (ie gold) is fast approaching as all countries devalue to stay competitive in the trade arena. As more people see this happening the smart money will flood to hard assets especially in the middle and far east as they have a long history of not trusting fiat currencies and a belief in gold and silver as the only true money. Do what u want and believe what u want but as the saying goes there in no free ride and the western world has been on one hell of a trip for the last 25 years and the bill is quickly coming due. Who is gonna pay? Cause if they print the money up to pay the bill then everyone who holds paper money pays thru devaluation. Not gonna be me cause precious metals and mining shares will soar in value as people scramble for Hard assets that cant be created out of thin air. This should all be happening right around the time GBB is proving up at least 10 million ounces if not more. We will look back in a couple of years and wonder how the stock price was this low so close to the initial 43-101 being released. Fine by me though just gives me more time to accumulate cheap shares for the eventual ride to the top. GLTA longs in 2011
Longrider1964