IPM closed today @ $2.62 on 121,400 shares
Currently, 43 Blocks Bid @ 2.62
30 Blocks Ask @ 2.65 (As per Canada StockWatch)
I noticed earlier that gold was bid in the neighbourhood of $352 USD. I think IPM continues to show strength in a rather uncertain gold market due to it's enormous potential and good management. It's interesting to note the recent successes of some of Murray Edwards' other "investments". I remain impressed with his personal committments to these companies.
Bobby, I agree with your theory of inflation. While I do not think it has penetrated the Consumer Price Index to any degree relative to economic growth, I too believe that it is running rampant in the market with "too much money chasing too few stocks". While I am prepared that gold could drop to that speculated $325 mark, I am confident that the best hedge is investment in gold plays exactly like IPM.
The potential of their plays and intercompany investments, as well as, good management practices (no hype, well-managed G and A) give them the benefit of increasing share price in a slumping market. I wait patiently for the day the market looks inward at it's fully valued and over-valued companies, and gold returns to save the day.
It's my opinion that the bigger companies (i.e. Barrick) do not lend themselves well to the current economic situation (I am not sure that anyone can explain convincingly, the current relationship between inflation and decreasing gold prices). Their exposure to the pitfalls of declining gold prices is too high. However, with their deep pockets, acquisitions, mergers and take-overs could be rampant. These well-managed, ambitious Juniors are, in my opinion, going to be the difference in the near future. When gold makes a comeback, as we all hope, the companies that should show the greatest promise will have a balance of low cost production as well as aggresive exploration (including acquisitions). I recall reading somewhere that the current demand outweighs current production by a factor of 1.6; that has to be a strong endorsement for continued exploration.
Finally, I enjoyed Tony Gatto's analogy of "smart money" and "dumb money" with regards to the thread "Has gold bottomed out?". I think with the recent flood of "dumb money" into the market, too many investors are looking for the next Bre-X and allowing themselves to be "hyped" out of their money. And in order to recover their enormous losses, they invest blindly again allowing themselves to become victims of hype. forming a never-ending loop. There's something to be said for caution, patience and due diligence.
I believe I read this on the "Gold Eagle" homepage:
An investor who is well informed has a very small chance of becoming extremely wealthy. An investor who is uninformed has no chance.
Well I'm sure I have bored you enough, and I welcome your critique (not too harsh though, I have had a tough week!) Very Best Regards,
Mike |
