A ... can I imagine the financial distress at $400 PoG...?
I'm still trying to quantify the effects of $55 oil on the equity markets...! I was watching K&C last night and they were all in agreement that if oil would drop to around $40-$45, we'd see a huge rally. It wasn't all that long ago when they were all in agreement that oil above $30 would all but guarantee a recession…?
Let’s cycle back to pre $300 PoG, the days when Jim Puplava and Jimmy Sinclair were buddies … in an interview, Sinclair said they’d be carting off executives from JPM on stretchers, feet first, once gold broke thru some stupid arbitrary number in the mid three hundred dollar range.
It hasn’t happened, and it won’t at $800-- in fact I'd wager that the economist would say that gold is still cheap in inflation adjusted terms-- just like what they're saying about oil today.
As for ARQ, the speculation is much more than a production story.
As for RNC's profit margins at $800, in your second paragraph you site-- "thus, would imagine it would be more difficult for junior explorers to raise cash to keep in busines." Are you confused or something? The higher the PoG, the easier it is to raise money in the equity market.
FP........................................................
AI
