To update the dude who is monitoring my activity here, I now own 250K at an average cost of just over .26......have been actively buying again today.
Why is it surprising that "confidence" toward the risk argument is far more pronounced than "confidence" toward the return side when nothing is going right for a company or sector? That's always going to be the case. Running with the herd is always easier than running against it. However, we are always lectured to buy when blood is in the streets. Yet, how many do that? Could gold just "keep dropping" and not come back and put CGR out of business? Yes, I suppose it could happen. Is this a remotely likely scenario? Well, it's not, IMO. I see far more reasons for gold to firm before long than I do for it to collapse. Thus, I do believe blood is in the streets here and now for this company and the sector. Further, I believe that we are seeing the prices we are witnessing with CGR due to unrelenting institutional "dumping." I say "dumping" vs. "selling" because "selling" implies more structured distribution than "dumping." It is evident that the seller(s) have decided to take whatever is offered. IMO, this makes the low price more anomalous.
I believe the price will continue to languish or fall more so long as the institutions leaving the stock have some version of a boatload still to sell. For me, I'll continue to take opportunity. I'm choosing "not" to disregard the most recent commentary of the company with regard to its likely expanding reserves, it's expanded financial resources via new debt financing, its significantly lowered cost structure looking ahead, its improving ore grade, etc., etc. These positives all fly flat in the face of the institutional behavior. However, institutions, in situations like these are often the greatest violators of the buy low virtue.....that is, they act the most contrary to the admonition at times. IMO, we are witnessing it here and now. All IMO, Hopeful
Well, it's possible, but not likely.....I'm done for the day.....now up to 375K.....lowest buys today were just at .2427. I feel good enough to post the info here.....I would like to build position a bit more....not saying if I can get an average of, say, .23, when all is said and done, that it WON'T be a losing proposition, but I feel pretty durn good that I'll come out ahead when all is said and done. IMO.
THE only reason gold has sold off is because of PAPER gold, other countries (Russia,Germany, India, even Mexico) know gold is more valuable than the US Dollar, the Euro, Japan's Yen, other any of the others for that matter.