Just listened to another exceptional Jim Puplava interview with John Kaiser

http://www.financialsense.com/financial-sense-newshour/guest-expert/2013/06/19/john-kaiser/gold-demand-hurt

(Kaiser's website is http://www.kaiserbottomfish.com/s/Home.asp) wherein he relayed so many fascinating facts about the gold bullion and gold miner sectors that it would take me pages to relay them all to you. The short version as it pertains to SFMI is that only 5% of the mining companies now have a cost to produce gold that is less than the spot price and additionally, deposits over 3 million ozs in "safe" countries are now rare. Of the 1800 resource companies that Kaiser tracks, over 50% now have only $200,000 in working capital and if they go much below that they are usually headed for a delisting and the scrap heap or vulture financiers pick them off. Right now the only thing that will save them will be for them to stategically drill and quickly hit hot deposits or else dramatically higher gold prices are needed. The problem right now with higher gold prices is that the bullion banks touting lower gold prices ahead which allows them to raid the gold ETFs like GLD, but once that avenue runs out, they must go to the broadly owned physical market which will cause a large spike in the gold price since most individual holders will not sell anywhere near these prices. In fact Kaiser said that individual owners have only been net sellers of gold in 2 years out of the past 100 years! He thinks that in the short-term it will be hard to predict when the remaining GLD holders will be comprised of mostly individuals and less hedge funds at which point the physical raid will end and the bullion banks can then only cover their shorts in the broad market. Kaiser said that in the medium to long-term clearly the price of bullion will be much higher and therefore juniors that can hold on with financing or hit hot deposits will then be amply rewarded. If SFMI has even 1/2 or the 10 million ozs of gold and doesn't succumb to vulture dilutive fanancing we should be fine since Kinross paid $1 Billion for a 13 million deposit!