Avalon is still a screaming bargain here and we all know it. I've accumulated at these levels nervously for reasons beyond simply AVL themselves - mainly that who knows where this all goes. Clearly there are funds being liquidated that were leveraged, and that hasn't hit the wires yet. But, that will lead to money being printed which should in theory help gold out.
Resources are all available at bargain prices right now and now is a great time to be looking At the same time, sentiment among investors in the junior sector is at a decade-low. The market almost disappeared for some of the less followed juniors, with only a few stink-bids remaining. Any buying interest is met almost immediately with selling pressure. Selling is indiscriminate with the exception of a few high-grade deposit discoverers.
With the credit crisis nowhere close to being over, the best approach for investing in resource stocks is a highly selective one. I am currently focusing on:
Many companies that fit even these stringent criteria are trading at a deep discount compared to large producers. In fact, on average, the market values Proven and Probable reserve ounces held by senior producers at 10 times the reserves owned by these quality juniors. We do not recall a time when this valuation gap was so wide. For astute investors, who are convinced that the gold and silver bull will continue, extraordinary opportunities abound.
On the flip if oil continies to fall then so will our overheads/production cost.
Theres another 6 weeks of this to sit out.
Be patient til then things will appear more clear in the fall
Who else is sick of not rallying with gold, but participating in all the downside when gold goes down? Ugh? feel like capitulation to anyone else?! Best of luck!
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Don Bubar Goes "Beyond the Press Release" to discuss the recent news on the Thor Lake Project
