The Floodwaters Will RecedeIt is very difficult to keep your cool when all around are losing theirs. Just think of the incredible fortunes that could have been made at the heart of the financial crisis of 2008. All you had to do was buy. But how tough was that!
So here we go again, albeit at a much dimished scale. The doomsday hucksters are predicting that our little baby will perish and we will all go to financial ruin. But are these not the same wizards that predicted that Canaco would be $10 by April? And was that not precisely the time to sell?
So what is the truth? The truth is that the world financial tsunami has yet to run its course. Yesterday Portugal just got bailed out. But the precious metal markets were conspicuously quiet. Naturally. Because people had been talking about it for weeks. The expected is never a catalyst for catastrophe. It is the unexpected. Now that is way tougher to figure out.
Well I am certainly not a financial guru, but it does not take a rocket scientist to figure out that sovereign wealth funds holding billions or even, in the case of China, trillions of U.S. dollars are not just going to sit idly by and watch that money evaporate.
Do you know that the market capitalisation of all the gold equities in the world is less than that of Wall-Mart?
It is not all that tough. The financial contagion that caught Greece, Ireland and Portugal has not run its course. The bond vigilantes are sharpening their knoves looking for the next victim. I read a pretty interesting article yesterday suggesting that France is in serious trouble and refusing to swallow medicine. Now does that just sound like the French? Now a run on France would be unexpected! Do you think that Germany would ride to the rescue once again? Not.
How about the good old USA still hanging on to its AAA credit rating? What a joke. The mere hint of problems there would send gold to the stratosphere.
Hard to believe though it may be, this is the time to be buying Canaco, not selling. Nothing has changed my belief that Dr Groves and company have been right all along in predicting that we are sitting on another Geita...and, if we ultimately do prove up 20 million ounces plus, this stock is cheap, cheap, cheap. All you have to do is buy ! (-: