posted on
Jan 23, 2009 07:48PM
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San Gold Corporation - one of Canada's most exciting new exploration companies and gold producers.
Message: Re: Duh!
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'Gold producers are in a great position now"
Exactly, that is what some people seem to forget. Your not buying a ticket to a lottery which you know will be drawn at some unknown time in the future and that everyone still holding a ticket will be a big winner. It's easy to say, just sit on your shares and wait but there is such as thing as opportunity cost.
There is a limited window for gold prices to rise and for shareholders in gold producers to prosper handsomely. Gold prices will rise and then at some point they will fall back to normal levels once again. The companies that are producing large amount of ounces when the gold prices peak will be the companies that fare the best. Sure a number of gold producers will survive but they will not prosper any where near the levels we will see at the top.
I only hope SGR is able to be a producer and a bountiful one at that when gold prices peak. Those are the companies that will have the most success.
There is a limited window here and I hope SGR is there as a serious producer when that time comes.
JFF7
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