There is a couple of positive developments for the current POG buying.
No doubt the Portuguese bank "crisis", middle east conflict on 2 fronts, the moving of funds to T Bonds with the spike down in yield are all helping an elevated POG. The Feds are continuing with the tapering but not much urgency to raise expectation of any rate rise will keep their economy humming along to better recovery. At some point there would be a spike up in bond yields as the economy goes into 'full recovery' without any tapering and we would once again see inflation froth to the surface for rates to be used again. Who knows when that will happen but I reckon now is as good a time to be getting exposure to this sector. It is a matter of getting on board with established gold producers or up and coming like ORS.
All else staying constant without any outliers, assuming there is cash flow to fund operations, this stock is going to be like TRY at the hey days with a high SP valuation and low shares on issue. Holders have to realise that we are in the best position available - a management determined to find good value for all holders without using the quick and dirty tool of Cap raising unless the last resort, a POG that has truly tested the low and on the way back up therefore in the right timing of the cycle and several options regarding gold production.
That Burns drilling might just give it a bit of a kick up to raise the profile. We just need more believers from the market coming on board.
ORS Price at posting:
5.8¢ Sentiment: Buy Disclosure: Held
