RE: RE: RE: I have to laugh I am firmly in the camp that gold will trade in the $3-5,000 range.
It will most likely take us a few YEARS to get there.
SSL will have lined up a cadre of streaming deals (surely some future LARGE deals also) by then.
SSL will make you many, many times you're investment even if you started fresh today IMO.
I would advise not to get greedy and attempt to parley your gains into the riskier producers/explorers.
Yes, they will have great leverage as gold ramps up, but....
SSL will continue to grab bits and pieces of multiple companies' mines, and profit off all of them. No increased capital costs, low overhead, no matter how many streams they have going.
They will then roll these profits into more profitable streaming deals (multiplier effect).
Now, the producers will have the mine(s) they have, no matter what (unless they take over rival miners). So no matter how great the mine is, how profitable it is, even with future expansion potential of those mines, their SP will have at some point accounted for all this blue sky potential of these mines, and maxed out people's expectations once they know what the mine consists of.
SSL has a business model, as opposed to a mine. They, on the other hand, are not limited to one or two or three mines. They could concievably have a piece of 100, 200, or 300 mines if given the time to do so. Their is no limit on their growth potential (of course the larger they get, the lower growth will most likely be, but they will still be growing, as per their model).
As for explorers, I wouldn't want to waste my time or money. When a mine has been proven to be economically viable, I would buy in THEN. Yes I would lose out on the gains up to that point, but the potential of a mine coming to production is hugely negative. I prefer to buy them after they have overcome that huge huge hurdle.
SSL does exactly that....
Watson is probably the best at what he does.
The expertise required to do these deals creates a pretty large moat to prevent or mitigate competition.
At some point, when the gold market goes ballistic, and Joe Sixpack is sharing tips on gold miners with his buddies at work, that will be the time I'll sell Sandstorm.
But not until then....