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Michael and the shorts - do you still see RYO going under? - I think that this financing will confirm that many of us who have had faith in the fundamentals will be rewarded with patience. With a little luck we might even see the metals moving up just when Kemess starts to produce.(Looks that way to me)
Why? The gold price does not want to be pushed down any more in spite of all the negative press, central bank selling etc. Dollar looks to be peaking out - Euro coming along to give it serious competition, Russia not stable, middle east smoking, Asia crisis far from over, South Africa problems, year 2000 uncertainty. Just give it a little time and we will have a nice gold run, just when nobody expects it - I think it is all there waiting to unfold. I do not even care about the $20 price range movements of late - they are nothing in the bigger picture. Gold is cheap, in a world enamored with paper assets.
Still holding, and buying positions in good gold properties(proven reserves and infrastructure in place), using profits from the rest of the overpriced market runup. And I like undervalued plays where the leverage will work in my favour should the scenario of higher metal prices unfold. It really helps when you can buy these stocks at low prices. I do not want to be picking up these shares when the XAU heads back up to the 100 range and beyond, and everyone rushes in.
One thing that is rarely mentioned, what will happen if we do get a gold run. There are very few shares available out there to satisfy such an event. It would produce incredible results.
RYO would be a major winner in this case.
Anyway - should be interesting tommorrow. The future however may be even better.
Risk/Reward here - looks like 80% win - against a 20% risk of loss.
Eric |
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