tag:blogger.com,1999:blog-7982981413278241287.post8402063383873705679..comments2023-10-28T17:54:39.467-06:00Comments on The Golden Truth: Newmont Mining Raises A $2 Billion Dollar Blind PoolDave in Denverhttp://www.blogger.com/profile/03016238915167131989noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7982981413278241287.post-36204548097450827652009-09-16T21:08:44.307-06:002009-09-16T21:08:44.307-06:00Hey gyc. This is just the start. Institutions ar...Hey gyc. This is just the start. Institutions are just starting to move capital into the sector - the ABX and NEM deals show the growing demand. It's mainly hedge funds at this point. Just wait until pensions and big insurance companies start allocating even just 1-2% of their capital to the sector.<br /><br />The second stage of long term bull market is characterized by big institutions moving into the market (the 1st being smart money, like us). The 2nd stage is usually the longest and has the biggest move percent-wise.<br /><br />A good friend and colleague of mine was an oil and gas analyst at Salomon Bros from 1996-2005. He pointed out the real boom in oil and gas exploration stocks didn't start until the big companies were issuing massive bond deals (I remember that because a lot of them were junk bond deals and I was junk bond trader in the 1990's).<br /><br />While I expect some nasty pullbacks along the way, like the one we just went thru from really March '08 to mid-Oct '08 - and really from May '06 to Oct '08 in the juniors - I think the ABX and NEM deals are sign of things to come.<br /><br />As for participation rate, the sentiment measures are still very low given the move over $1000 for gold, and how many new precious metals mutual funds have you read about lately? I have not heard of any. The public still can't even spell "gold."Dave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-87971899163923531772009-09-16T16:32:43.336-06:002009-09-16T16:32:43.336-06:00I thought I posted this comment before, try again!...I thought I posted this comment before, try again!<br />Dave,<br />An offering of 2Bln seems a bit aggressive. What do you think this will do to NEM stock near term? One of my arguments against a bubble in metals is due to the low participation rate. 2Bln is a lot of participation! I am not being difficult, you know I am way long metals (gold/silver) just wanted some input.EconomicDisconnecthttps://www.blogger.com/profile/02802078645713106743noreply@blogger.com