Winzer,
We saw the finance world we've known, all our lives, change today. Interest rates rose yesterday but bonds, rather than decline and raise the yield, rose as well. Strange event indeed.
The main reason cited for this 'happening' is the fact that the US government will not be needing to issue so many 'long-term bonds', thereby making those that do exist worth more. Ergo, L-T bonds are now trading just like a commodity with fixed supply. Stop the presses!
Anyway, the upstart of all this is that there is supposed to be alot more money available for investments, other than Bonds, and that this in turn will help to fuel consumption of durable items and thus drive up the price of commodities and thus inflation.
I know it's a stretch, but that appears to be 'today's' thinking.
I think that Denis Simoneau is a fairly trustworthy man and Vic King has already proven that he can find gold where others cannot. Such qualities combined with the deals that they have been able to strike with other companies, tell me that the team deserves a little latitude and that the stock will perform in time.
As a side note, notice that oil is very close to breaking $30.00 per barrel. The psychological impact of this event, when it happens, will not be lost. Also note that Platinum, Palladium and Rhodium continue to rocket upwards based on supply problems. This will have an impact on vehicle prices since Platinum is used in catalytic converters to reduce emissions. Of note too is the price of Nickle. Soon we will see gold start to rise and with it the fortunes of many small gold stocks.
Brian
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