Re: The Falcon Soars!
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Message: The Falcon Soars!
Hi DC.
Yes, I was thinking about that inevitable pullack today as well but this one is just too hard to call. It just doesn't fit into a slot somehow...its quite unlike anything I have ever held. There are so many external and internal factors converging in proximity here that there is not much we can do but make semi-educated guesses...therefore, I a holding for qite some time...up and down, if that happens. We are right now entering a very unpredictable era...only knowing one thing...the quest for metal in the ground is going to take off...as per below article. But you all know this. Will a retail surge mess up the plans of the bigger players..who may have been a little too cocky, a little too coy?
I believe there is an old fashioned retail buying frenzy started in SFMI as the stock has risen so rapidly and as many newcomers are piling in. You know, I tell 10 people, they tell two people and on it goes times how many others..and many who have been lurking... telling between 2 to 10 people? There is a real thirst for barnburners like this...and such a dearth of them. The news is spreading like a grass fire I believe. Now some of them will actually research the stock and I think will be quite surprised at the fundamentals. I've had calls from people who I have mentioned the stock to and who I emailed last night and they are buying. Is there a new interest out there?
Buying a huge resource for 15 cents is incredible...and so it will be at 25 cents ....then 50 cents...who knows. But then there are the bigger players, wealthier individuals and small funds...and then those real biggies who are maybe eyeing SFMI quite nervously out of the corners of both of their Octapussy eyes. As I just posted another board (which I am hesitant to post here because this is a very educated forum), I believe there is a new sense of urgency out there amongst the big boys and SFMI must be looking a bit like eye candy to them. Will one of them jump first? I believe the time is getting close and Barrick has done it before with even less incentive when gold was at $450 many years ago. It is coming full circle fast I believe. They are much more desperate for gold and silver in the ground today. Excerpts:
Peak Gold and Inflation: A Perfect Storm
Marc Davis
BNW Business News Wire
Posted Apr 13, 2010
“Even the president of the world’s largest gold producer is now dropping hints about the implications of a growing below-ground supply squeeze on gold’s pricing…”
The inexorable onset of accelerating inflation, matched with a global decline in gold production, will underpin high-flying gold prices for years to come.
So says John Embry…. there’s the fact that most of the world’s major deposits are virtually mined-out and new ones are becoming harder to find and more expensive and politically problematic to bring on-stream, Embry says.. gold’s price still has a long way to go before it even comes close to matching its peak price during its last major bull run, when it hit an intraday high of $875 on January 21, 1980, he adds. To do so it would have to rise to around $2,300 on an inflation-adjusted basis.
Even the president of the world’s largest gold producer is now dropping hints about the implications of a growing below-ground supply squeeze on gold’s pricing. Aaron Regent of Barrick Gold (TSX: ABX) (NYSE: ABX) recently told a gold investment conference in London that major gold mining companies are continually struggling to replace mined-out reserves.
“There is a strong case to be made that we are already at peak gold," Regent said. "Production peaked around 2000 and it has been in decline ever since. And we forecast that decline to continue as it is increasingly difficult to find ore." …at least one new multi-million ounce deposit needs to come on-stream every year just to replace this output. That simply is not happening…
Hence, the prospect of a looming below-ground supply/demand imbalance is being enthusiastically regarded by most gold development juniors as a call to action … In fact, some of them will be salivating over the prospect of profit margins that are almost unheard of in other industries.…
Marc Davis
BNW Business News Wire
Posted Apr 13, 2010
“Even the president of the world’s largest gold producer is now dropping hints about the implications of a growing below-ground supply squeeze on gold’s pricing…”
The inexorable onset of accelerating inflation, matched with a global decline in gold production, will underpin high-flying gold prices for years to come.
So says John Embry…. there’s the fact that most of the world’s major deposits are virtually mined-out and new ones are becoming harder to find and more expensive and politically problematic to bring on-stream, Embry says.. gold’s price still has a long way to go before it even comes close to matching its peak price during its last major bull run, when it hit an intraday high of $875 on January 21, 1980, he adds. To do so it would have to rise to around $2,300 on an inflation-adjusted basis.
Even the president of the world’s largest gold producer is now dropping hints about the implications of a growing below-ground supply squeeze on gold’s pricing. Aaron Regent of Barrick Gold (TSX: ABX) (NYSE: ABX) recently told a gold investment conference in London that major gold mining companies are continually struggling to replace mined-out reserves.
“There is a strong case to be made that we are already at peak gold," Regent said. "Production peaked around 2000 and it has been in decline ever since. And we forecast that decline to continue as it is increasingly difficult to find ore." …at least one new multi-million ounce deposit needs to come on-stream every year just to replace this output. That simply is not happening…
Hence, the prospect of a looming below-ground supply/demand imbalance is being enthusiastically regarded by most gold development juniors as a call to action … In fact, some of them will be salivating over the prospect of profit margins that are almost unheard of in other industries.…
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