The numbers provided by both the AR2014 and 1QR2015 of Philex Mining Corporation are not impressive. However, since PX is a gold stock, I believe that this stock has a long prospect, for about 5 to 10 years. Buying this stock is my way to protect my income from inflationary monetary policy. Almost everyone I talked to in several stock market fora do not like this stock. Their primary reason? In addition to the current decline of mining sector, the restrictive regulation of PH government adds more burden to mining firms. But I think the real reason why they fail to appreciate the value of a gold stock is that they don't understand the economics of gold.
The major barrier to the growth of gold price is political. I think that governments will continually inflate the money supply in the coming years "to save the market" from itself. As I review the price history of gold, I realized that for 4 years now, its price has been depressed. I don't think that it will last 5 or 10 years more. The longest period in recent history that the price of gold has been depressed was 13 years, between 1988 to 2001. Both governments and central banks hate gold for it limits their power to create fiat currency. But they cannot do it indefinitely. Sooner or later, there will be a day of reckoning. When that time comes, investments in gold in whatever form - bullion, coins, mining shares - will soar! This is the best long-term investment I can suggest to my relatives and friends.
Relevant Article:
China Is Laying the Groundwork for a Gold Standard Right Now (Video)
Relevant Article:
China Is Laying the Groundwork for a Gold Standard Right Now (Video)
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