Why so focused on the price of gold.
in response to
by
posted on
Dec 29, 2011 10:52AM
San Gold Corporation - one of Canada's most exciting new exploration companies and gold producers.
This board is very focused on the price of gold as the vehicle which will move us up. I first bought this stock in 2005 and the price of gold was below $500. At that time people on the other board though San would go to $5 very soon. If someone would have asked what the value would be at todays prices I can imagine the response. It appears the price of gold is not the thing which will move San. Besides, the price of gold floats all ships.
I believe San Gold has to break away from the pack in order to substantially move up. That is why the lack of response to last weeks report is disappointing. If those kind of results don't do it, what will.
I think that what will move San Gold will be the declaration of a dividend. With all the babyboomers retiring and now wanting dividend income from all those RRSPs the funds are and will be looking for dividend income not speculative, small cap gold stocks. The dividend could be small or at least management could hint at something coming soon. That should increase interest in San and distinguish her from the pack.
Do you see the management of this company ever willing to part with money for shareholders and what time frame might that be.