GOLD
We have been suggesting since the blog started that junior resource stocks are the place to be. . We have also suggested that junior gold stocks are a favored sector.
Our belief is based upon many factors, including
* a worldwide concern about the value of paper money,
* the decreasing amount of gold being mined each year,
* the rush by the gold majors to acquire new measured resources,
* a decrease in the amount of gold flooding the markets
* s direct correlation between the share values of junior exploration and mining stocks and the increasing demand for the commodity,
* the failure of senior gold resource stocks to manage their inventory and their production costs efficiently,
* the value of the commodity still being undervalued based on a comparison to its inflation adjusted value of three decades ago,
*and numerous other factors.
It was a gold rush – but in reverse. For a few decades now, central bankers worldwide have been hustling to sell their once prized gold bars. But now, the world seemed to have changed. There is a mad rush recently to reacquire bullion by central bankers.
There was an interesting article in The Financial Times Ltd 2010 of London that discussed many of these beliefs recently and we are posting a direct link to that article in this blog. To see the article, you must register your name, but there is no cost, and there is no spam so long as you say that you do not want to receive offers. This newspaper is quite excellent and is worth reading.
The problem is – there isn’t enough of gold to go around.
For those of you who are interested, please follow the link.
By Javier Blas and Jack Farchy in London, Published: September 26 2010 20:23
This article can be found at:
http://www.ft.com/cms/s/0/4b148650-c9a1-11df-b3d6-00144feab49a,_i_email=y.html
“FT” and “Financial Times” are trademarks of The Financial Times.
Copyright The Financial Times Ltd 2010
By Larry Cyna
Mr. Cyna is an accomplished investor in the Canadian public markets for over 20 years, and has managed significant portfolios. He is a financing specialist for private and public companies, and has expertise in real estate and debt obligations. He has assisted private companies accessing the public markets, has been a founding director of public companies and continues as a strategic consultant to selected clientele.
He is and has been a director, a senior officer and on the Advisory Board of a number of TSX and TSXV public companies in the mining, resource, technology and telecommunications sectors, and the Founding Director of two CPC’s with qualifying transactions in mining and minerals. He was an honorary director of the Rotman School of Management MBA IMC program, has completed the Canadian Securities Institute Canadian Securities Course & Institute Conduct and Practices Handbook Course, was a former Manager under contract to an Investment Manager at BMO Nesbitt Burns, a roster mediator under the Ontario Mandatory Mediation Program, Toronto, a member of the Institute of Corporate Directors of Ontario, a member of the Upper Canada Dispute Resolution Group, and the Ontario Bar Association, Alternate Dispute Resolution section.
He obtained his designation as a Chartered Accountant in Ontario in 1971 and was the recipient of the Founder’s Prize for academic achievement together with a cash reward. He became a CPA in the State of Illinois, USA in 1999 under IQEX with a grade of 92%. He is a Member of the Institute of Chartered Accountants of Ontario and the Canadian Institute of Chartered Accountants.
He holds certificates in Advanced ADR & in Civil Justice in Ontario, Faculty of Law, University of Windsor, certificate in Dispute Resolution from the Ontario Institute of Chartered Accountants. Previous accomplishments are Manager of Cymor Risk Consultants LP specializing in Risk Management Assessment; CEO of Cyna & Associates specializing in mediation and ADR; Founder & Senior Partner of Cyna & Co, Chartered Accountants, a fully licensed and accredited public accountancy firm with international affiliations; and was a partner in a large public accountancy firm.
Mr. Cyna is well known in the Canadian Investing community. He is invited to, and attends presentations given by public companies usually 3 or 4 times each week. These presentations are intended by the various hosting companies to present their inside story to sophisticated parties and Investment Managers for the purpose of attracting funding, or of making parties more interested in acquiring shares of those companies. Being a part of this keeps Mr. Cyna deeply involved in the current market and leads to numerous investment opportunities.
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