Gold, Guama, Zen and the Madness of CrowdsIt is a necessary, but not sufficient condition for the successful investor in mining companies (and equities in general) to have a good analytical grasp of the fundamentals. Of equal, and perhaps greater importance is to understand the psychology of the marketplace.
Were we not in the depths of the worst bear market in precious metals in at least two generations (source: Frank Guistra), then yesterdays's announcement of two holes bearing around 600 gm-meters of gold each would have been quite the sensation. In a bull market investors would have fallen over themselves in a buying panic not to get left out. In a bear makket the mentality is rather: "Finally I have a little buying interest so that at least I can realise on my losses."
But just as dawn inevitably follows night, gold will reassert itself as a store of value despite the naysayers. I would suggest that this might be an excellent time to dip into the piggybank of your kid's college education (just kidding) and buy GQC with both hands. The realisation that Escandalosa, Romero and Guama are part of a massive interconnected system will gradually take hold in the coming months. Avoid the Homer Simpson Duh! syndrome.