At this point with Gold dropping on uncertainty about fed bond buying programs, I think it is prudent to consider what will happen to the price if inflation finally makes itself known in the non-real world.

Personally, I don't think the POG will go up past 1400. The reality is that with some countries moving to buy up the gold for their reserves has supported the price for awhile.

Now that some of these countries have moved into gold in a bigger way, and some countries demanding that their reserves be repatriated, the POG is going to be dropped down by the organized cartels to cover the costs and to devalue other currencies around the world that have been on a sweet commodities ride. Hence the reason that there was such a short on the CDN dollar in the last month.

This could go on for the rest of the summer at the very least, but more likely till the end of the year.

SGR's price is going to stay here accordingly.

What SGR needs to do is live within their means because the equity taps are now off, and it won't take them long to burn through 34m at the rate they are going.

I suspect that this may indeed be the case, as SGR can't keep drilling and developing at this pace. Time to pick one or the other.