Member Info for jammin86

I think anyone claiming to be rational should see that trump is unpredictable. Even if he resolves some of the tension supporting high gold prices, can he be trusted? Probably not! Why would those currently buying gold pass on the opportunity to load up on any weakness? I don't see it! I call it the narcassistic trade - you can count on the fact that trump will never risk losing face, or taking accountability. And that means heightened tension for 3.5 more years

Gold is not fiat. It's also not simplistic, it gives a decent history of money which demonstrates why gold is a store of value. I'm not suggesting it'll replace Fiat altogether but it will absolutely reflect the increase in fiat as debt runs away from governments

Well there's no need to guess because it's quite well researched. Read "broken money" by Lyn Alden. Gold has withstood the test of time: for millenia it has carried a high monetary premium (price of gold over and above is intrinsic value) and nobody has been able to tamper with supply. That is "why gold". Millenia of trust

Not logical? Says who. Preserving wealth in the face of fiat currency debasement IS logical

I don't see how that's possible. Demographic and globalisation tailwinds are gone. The 40yr secular bond bull market is over

You're comparing the current debt to gdp to 1946, after world war 2. Lol. In the years that followed, demographic and globalisation tailwinds led to a bull market in bonds.

That's all over now, so the very high levels of indebtedness matter a lot more

Lol, nice one going for the personal insults. You must be very smart

By design*

No, but design you have to have ppl selling or there'd be nothing to buy. Lol. Markets function on different views

It's a good point, but I still think Powell will cut rates. And both the rate cut and the perceived lack of fed independence should be good for gold

GGP hasn't absorbed the fall in gold price very well though. PAF has hungry institutional investors that will likely be snapping up shares wherever there's weakness.

I'm certainly buying more. Great company.

Selling 20% of shares on the open market would cause the share price to crater. I just don't see an II buying in for cheap and offloading immediately, not when they stand to make a lot more money holding

They were bought at 5p, and used to settle debt at a value of 6p

In that case the company used treasury shares they bought at 5 (or 5.5?) to repay a loan the valued them at 6. Not bad

Surely they wouldn't buy such a huge chunk of shares and immediately offload for a quick 10%? That just seems daft to me. You can't buy 20% shares on the open market without pushing the price up dramatically

It'll only suppress the price to the extent that those who received the treasury shares sell them. But they'll be gobbled up.

I'd far rather they conserve cash to build the mine, and use the treasury shares which they previously bought at lower prices.

How would that explain the new IIs who gave taken their place? They're obviously confident that things are looking good or they wouldn't have parted with c20m

Fair comment, I was only invested a couple months when the announcement came, so I took the quick 40% and wasn't too upset.

Does it seem like something dodgy is happening here?

you say that, but shanta was bought out for a premium over market price. i was ****ed i didn't get the massive gains we would definitely have gotten with where gold went, but i did make about 40%

A 5% fall following a big rise IS volatile. Especially when the 5% decline happened over 2 days