A few thoughts as we wait for the latest ROS Headline.
Whilst some are predicting a China property bubble burst (sooner than later), I see greater financial destabilising issues of a far greater magnitude in Europe & USA. In both instances we are witnessing the unfolding impact of totally incompetent politicians, bankers and brown-nosing bureaucrats. Both sides of the Atlantic are faced with rapidly compounding debt, rising inflation and the rapid decline in the fiat monetary system.
A default by Greece can only be postponed by the issuing of more loans to prop up an economy already well underwater with no sign of a plug or periscope in sight. Providing more loans (that cannot be repaid) will simply prolong the death throes of a country that should never have been included in the Euro 'experiment' in the first place. (IMO) Let's leave the other 'penny dreadful' PIIGS for another day!
Unlike Greece, the US can (and will) print more greenbacks until the US devalue to such an extent they will basically default through inflation.
The latest reports out of the US show:
1) No real growth 2) No real recovery 3) No end to the unemployment problem 4) No bottom in the real estate crisis 5) No benefit from QE2
The Dems & Reps will have to agree to lift the US debt limit so they can keep the financial ball rolling. Wall Street will feel the pinch and in a bid to 'stabilize' a market routing, Ben B will crank up the presses once more and blast off into QE3 and in doing so prop up the markets and get the delinquent bank feeding frenzy back into top gear.
So where do I see ROS situated in this coming financial debacle?
The only true form of money through time has been Gold and (to a lesser degree) Sliver. There is a mountain of information about the importance of having gold and silver in your trading portfolio, as bullion in a safe storage vault or buried in your backyard!
We will all need a hedge against coming inflation and I see holding Gold & Silver as an essential pre-requisite. As time hopefully will reveal, ROS will strive for and source sizeable projects in both gold & silver. A company with these two assets alone will prove to be a valuable hedge against the coming decline of fiat currencies around the world and the lowering of living standards. I see the share price of ROS rising accordingly based on these two metal plays alone.
Considerable debate continues as to whether China is due for a bubble burst in the property arena. I tend to think not so .... at least not for the time being. I see China having a continued and growing need for building & raw materials. China is the world's largest buyer of copper. I see that continuing for some time yet. I am sure Yellow stone will ultimately play a role in supplying copper to China sometime in the future to the benefit of ROS holders.
There is also a proposed play in Potash which is mainly used in fertilizer. We now hear of the world facing a shortage of food due to severe and tragic global weather conditions, changing weather patterns, increased population and a migration of farm based worker to suburban / city reigions. I see the need for an increase in the use of fertilizer to help increase food production. A Potash play for ROS could only be seen as another bonus in the wings!
To say I am looking forward to seeing how ROS unfolds is an understatement. I am very excited by the prospects they have alluded to in their statements. I firmly believe ROS to have huge possiblilities, capabilities and the expertise to make things happen.
ROS Price at posting:
35.0¢ Sentiment: Buy Disclosure: Held
