CEO Rene Marion Discusses the Future of Gammon Gold
Please follow this link to the article resulting from my recent interview with Gammon Gold CEO Rene Marion. If you enjoy the content, I thank you in advance for reccing the article at the source.
I found his outlook for gold and silver prices particularly interesting. For my part, I am unwilling to attach specific timeframes to my price forecasts, but I nonetheless take notice when dialed-in industry participants like Mr. Marion do. $2,000 gold by the end of 2011 would surpass my own expectations, but there are scenarios I can envision that could support such a move, but as a long-term investor I join Jim Rogers in hoping for a somewhat more gradual and orderly increase in gold and silver prices.
My apologies for the delay in my microcap series. Please rest assured I have not abandoned the project, and another installment will come shortly.
Broadly speaking, I was looking to raise some cash this morning after essentially going all-in over the past couple of weeks. The apparent increase in the risk of a broad-based market sell-off continues to threaten a potential impact upon commodity-related equities in the near-term, while the well-publicized lack of attractiveness of U.S. long bonds as a safe haven portends a far swifter reversal from any weakness than we saw in the panic selling of 2008. No matter how bullish one is on the outlook for gold and silver prices, I simply believe that the present market environment implores investors to consider maintaining some significant cash in reserves. I had raised a 20% cash position on the way up to $50 silver, and I subsequently redeployed that capital into the recent lows. My target now is to rebuild a 20% cash position as quickly and as painlessly as I can. Is anyone else employing a similar strategy?