Letter to Investor
posted on
Sep 18, 2010 12:25PM
Creating value through Exploration and Development in the Sierra Madre of Mexico
Gina, I know the stock shot up after those great drilling results last year, but a big part of that was related to overly excited people piling on for the ride, propelling the stock higher than it should have gone on the news. The stampede soon ended and a lot of those people made their ways back out again, congratulating themselves, perhaps deservedly so, on the few thousands of dollars they made with their insightful trades. There has been other good news that hasn't done anything for Kimber. What will ultimately move the stock is a change in public sentiment involving gold. This will eventually happen and could happen at any time. This may come as a result of drilling results, but it also could come as a result of sunspots, or even a Chinese press release of uncharacteristic nature. Nobody knows which straw will break the camel's back, but everyone knows that there is always a straw that will do it.
If you doubt that gold will become something on the minds of everyone in America in a few years, such doubts, in my view, are mistaken sentiments. The dollar is in a much more unstable position than most people think. It is similar to the way the mark was viewed in Germany before hyperinflation. Will we have hyperinflation here? I don't know, hyperinflation being basically a man made phenomenon, I do not feel confident that anyone can know for sure, but our leaders are certainly repeating many of the same blunders that put Germany on that path 80 years ago.
When the dollar starts really getting into trouble and things start costing a whole lot more, not ten or twenty times more, just twice or three times as much, people will start getting educated about wealth-preserving assets very, very quickly. In other words, they will start looking around for things that seem to be working in a monetary environment where nothing they have been used to working well is working well anymore.
That will take their interest and their assets into gold and silver as it always has throughout human history. Interest in gold will spread like wildfire. It will not take advertising or any marketing campaign. Do you remember after the Space Shuttle crash how fast Space Shuttle jokes spread all over the country, through the workplace, through the schools? This is how it will happen. The interactive human web has been present long before the internet. The telephone made it faster, and the internet has made it much faster still. When gold goes, everyone will know, and the time is near, I believe. All the best, Sitting Bull