Well said Cashtangocashtango00 wrote: My experience is the market is a swinging pendulum, rarely correct, always one way or the other. Mining stocks tend to be more volatile than many which is why you must take that into account regarding how and when you buy them. Saying that, over the longer term, the market becomes pretty efficient at its valuation becomes more appartent through drilling and development. The market values assets based on discounted cash flow projection and although a great earnings earnings report can move a stock short term, as soon as its released, its yesterdays news. Mining stocks become exciting as the asset is proven up, the market values based on discounted future cash flow change rapidly. The drill bit can create a lot of valuation very quickly.
I am heavily invested in this story. I believe in it and the people driving the ship. I have invested in resource plays for many years and have certain rules that I follow that ensure my success in the long term. I can handle the volatility and have my eye on the end game. Saying that, I never knock someone from walking away. Everyone has their own risk levels and parameters that they establish through their own investing history. GLTA
Just to add to these comments, properties and companies are purchased at discounts, not premiums; otherwise, there would be no money for the new owners (everything else being equal).