RE:Good Article on the Underlying Support for Gold Price......Further, that has always been a question to me, as to how gold stocks and NFG in particular, might act in the event of the bursting of the 'Everything Bubble', which I assume WILL burst.
The ironic thing is that in the midst of the Everything Bubble, gold stocks are at historic, deep undervaluation levels, the likes of which have never, or rarely been seen in all of history of the gold mining/ exploration industry.
For myself, this is why I look to gold stocks as both a defensive 'safe haven' investment, and also an aggressive, large capital gains goal investment ( by picking the right gold stocks.... not an easy task as we know - but, I think doable).
The catch would be this....in a significant bear market created by the bursting of the Everything Bubble, does that bursting effect the price of gold and gold stocks, too?
Yes, of course this is an obvious possibility.
But, the other possibility is that gold becomes a "safe haven' investment, a refuge in a bursting of the Everything Bubble. There are signs that gold is acting as a safe haven investment, and even a counter trend investment to the other investments in the Everything Bubble.
And, this is why this article sheds some very interesting light on this BIG PICTURE consideration.
An important caveat for NFG shareholders and particularly for NFG management is this:
We need to understand that NFG is in a RACE. The RACE is that NFG NEEDS to become a producing gold miner ASAP.
This is the BIGGEST thing NFG can do to change the recognition of NFG from gold exploration company, constantly in need of new capital raises, into a self funding, gold mining- producing company creating ample cash flow to fund all, or at worst, most of its exploration and other investment needs.
We as shareholders should be prodding NFG management to understand that we are in this RACE.
We can't afford to allow NFG to rest on its drilling result laurels, and just continue exclusively on drilling results......that is simply NOT GOOD ENOUGH.
Instead, we NEED to start production ASAP.
We have this option right in front of our noses with the Maritime Resources MOU.
Maybe NFG wants to find the exact best way, in their view, to get into production, and maybe they are simply holding out for a high enough buy out offer, and will continue to wait...wait....wait....to proceed to production.....but, that is simply WAY to Dangerous.
Rather, we need to shore up the defensive walls of NFG to withstand the typhoon of a bursting of the EVERYTHING BUBBLE.
This is the RACE we are in with NFG. I don't get the feeling that NFG understands that we are in this RACE.
It may be up to shareholders to prepare a well thought out message to management to make sure NFG wakes up to what I think is a fact, that NFG is in a RACE to prepare for a bursting of the Everything Bubble.
There is one key action NFG can do to prepare as best can be done in recognition of this RACE......get producing from North Queebsway ASAP !
There is no more important path that NFG can take other than the path to begin producing gold, ASAP !