St Andrew Goldfields Ord STADF

My theory on gold...

[venturecop1]

Once again, the powers that be are letting a little experiment unfold in Europe to see what happens, people are de-leveraging and selling what they can. The moment they feel the situation is starting to get out of control, there will be massive co-ordinated action that will turn gold and other commodities on a dime. But until we reach that inflexsion point, there will be more pain.

 

Remember that the global average cost point to produce gold is $1050 per ounce. It would seem very unlikely that POG will breach this level. And as far as SAS goes... most of the downside has been priced in already IMO. Even if we only earn a nickle for the whole year because of depressed prices.

 

And look at the bright side, if you own a pure explorer... your money is probably going to be gone. At least SAS has reserves, a mill and self-funding.