The link between gold exploration / production30 Mar 2024 12:32
That most 'punters' appreciate opposed to those which 'investors' understand are very different. Most investors appreciate the time scale involved and the production costs but this is not so with the punters. The punters assume that if you have high grades of gold in the ground and the price of gold rockets then shares in a gold exploration company will rocket too. I am absolutely amazed by how easily Joe Public is lured into pouring their hard earned savings they can ill afford to lose into all sorts of ill disguised get rich quick Ponzi schemes. Even those who you would think would know better get well and truly taken in. For example Sam Bankman-Fried sentenced to 25 years in prison Thursday This was a man who could do no wrong and even testified at congressional hearings as the face of a booming new industry had in fact perpetrated one of if not the largest financial crimes in U.S. history. Ever heard of the Poseidon share scam bubble? I remember it very well. It was in my early days of investing in mining shares notably gold.. The Poseidon bubble was a stock market bubble in which the price of ALL Australian mining shares, good, bad or indifferent, soared in late 1969, then crashed in early 1970. It was triggered by the discovery by Poseidon Nickel of the early indications of a promising nickel deposit (which never materialised) . Admittedly they probably could not get away with the scam nowadays but I believe that we are on the cusp of a gold bubble with a rush to secure assets and protect savings. This will be greatly assisted by social media no doubt, a factor which never existed in 1969 where Poseidon was concerned. Perhaps I am wrong but the present instability in the world is setting the scene for it and I am really looking forward to a boom in gold prices. After all the supply side is relatively falling further behind demand and the lag of many years between exploration and production is only now slowly catching up with demand. This should ensure a buoyant and stable market for the forseeable future. GLA
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