Hindsite is 20/20 and as such it is easy to look back at say shoulda coulda woulda, however I think you hit the nail on the head with your reference to Homestake. The reasons to be invested in a company like SGR are solid. First and foremost is the erosion of Fiat money so investments should be in assetts that have intrinsic value. ("If you drop it on your foot it hurts") We can argue all day as to whether gold is real money or a barbarous relic, however we will leave that to another day. Second reason, is that if there is no increase in valuations as we are seeing with the majors right now a company like San is increasing production and resources so should increase in value even in a flat or potentially declining stock market. Where I totally disagree with Brent Cooke is that if liquidity dries up again as it did in 2008 small exploration companies favoured by BC will wither on the vine . Sangold will soon be self sustaining and if capital dries up she now has enough resources and infrastucture to survive many years without spending the huge sums of money we are spending currently. At my age I am comfortaable sitting in SGR knowing that I may have missed a few homeruns however I sleep at night knowing that I will not strikeout. The third important reason to be in SGR is the location. How can you find a safer place to be. Smack dab in the centre of a stable democracy that has a society that respects the rule of law and is sitting on some of the oldest and most stable geological formations on the planet. The time for 20/20 hindsite is not today IMHO, but will be after the demise of the house of cards that is sitting on a foundation of worthless paper promises that no one has any interest in keeping.

PS

If you want a little entertainment while learning about economics.

http://www.youtube.com/watch?v=GTQnarzmTOc