Sino Gold is an Australian based Chinese / Mongolian low cost, unhedged gold producer. It is, give or take, the biggest gold producer in China. China being the biggest gold producing country. Sino Gold has additional mines coming into production and further significant exploration prospects.
I like the gold story still as the world is either deflationary ( failure or delayed impact of all stimulus - unlikely) or inflationary as the impact of qualitative and quantitative monetary easing, and the plethora of fiscal stimuli take effect in the second half of this year, if not already eg China. And more fiscal stimulus and monetary easing is promised. Further, many commodities - both mineral and agricultural, are and will be increasingly in significant demand. Either way gold has a store of value. In the longer term there must be downward pressure on USD, providing further impetus to the gold price. Any revision of central currency issues through G20 or whomever to my way of thinking does not entirely mitigate golds place as a store of value, particularly in this environment.
$3.75 (04/02/09)
