General Stock Ideas

[bigworld]

GFP: Remember, most of the money borrowed was done when metal prices were lower. And they were risky but it takes years to get a field prpared for mining operations. You have several years from a "find" to an operating mine. Fast forward. Gold is selling for almost $700 an ounce ABOVE the cost to produce. So the miners have incredible free cash flow right now. With the direction of precious metal prices I have NO concern about the debt that the Miners may still carry. My ONLY fear with investing in the miners is concern over possible adverse governmental actions that might be tried in the future. Would a desperate government try gold confiscation again? It's unconstutional (Fifth Amendment) and the government would have to pay "just compensation" ascertained by a jury. Roosevelt got around it because the price of gold was fixed back in the 1930s. The price of the metals now floats and the metals are traded all over the globe. But our government is corrupt and desperate. So who knows what they may try. But that is my only convern. Precious metal prices arre going to rise. The Fed might add $10 Trillion to its balance sheet before the intial stage of this crisis is over. And the National debt will certainly be > $25 Trillion soon. World wide debt stands at about $325 Trillion, or about 3.5 times world GDP. It's unpayable. Governments have only one choice...to inflate away as much of it as they can before the sheeple start to revolt.