Communicators

are winners!

News

15.05.2008
Miranda Gold: Interview with Sascha Opel

Miranda Gold: Interview with Sascha Opel

Sascha Opel: “The Ultimate Currency That Will Survive All Times”
Source: The Gold Report 05/09/2008


As the former chief editor of the first newsletter about the German “Neuer Markt” (New Market), Sascha Opel brings a distinctive outlook to the precious metals market. He was also the co-chief editor of “Der Aktionaer” (The Shareholder), one of the biggest German Stockmarket Magazines and advisor to an investment fund that achieved an outstanding return of 700% in three years. Today his company, Orsus Consult GmbH, publishes one of the most (www.rohstoffraketen.de) popular German newsletters on commodities and junior mining and exploration.

TGR: What are your impressions of the precious metals sector?

SO: There are two historical remarks that provide a good perspective on the significance of gold. More than two centuries ago, the French philosopher Voltaire observed: “All paper money returns to its intrinsic value—zero." One hundred years later this belief was reaffirmed. Following the Panic of 1907, five years prior to the creation of the U.S. Federal Reserve, the wealthy banker and financier J.P. Morgan pronounced that, “Gold is money and nothing else.”

Long-lasting gold bull markets take place when gold’s role as money is being re-established. In my opinion, we are just beginning this period of re-establishment. Those calling for the end of the precious metals bull market anytime soon are sadly mistaken. For the short-term, the price of gold will remain around $US800.

Rising food prices do pose a near-term threat to gold. In Asia, food expenditures represent the largest percentage of a family's budget. This is not the case in Europe or North America where a much smaller percentage of the monthly income goes toward food. If you earn $US5000 a month, a $1 to $2 increase in the cost of rice or bread is not significant. But if you earn only $US200 per month, every increase hits you hard. So, if the big private gold buyers in India and the rest of Asia have less to spend on gold, the demand there could decrease for a while. On the other hand, we should still have the biggest buying from private Investors and institutional Investors ahead of us.

Another critical consideration is that mine supply will decline for at least the next three or four years regardless of the price of gold price. Gold could rise to $1,500 or $2,000 per ounce and have very little impact on the supply outlook. One of the most important factors influencing production growth is the absence of large, fully permitted gold mining projects that are ready to start.

TGR: What do you consider to be the best way to invest in this sector?

SO: I think the most important thing is to own physical gold. In the next few months the gold price may go as low as $US800. This presents a good opportunity to buy physical gold. Everybody who owns only “paper money” should at least put 5% into physical gold. This is the ultimate currency that will survive all times! I prefer the one oz. Australian nuggets, or for bigger investments, the one or five kg bars.

I am also investing in the big gold stocks on the AMEX HUI GOLD Bugs Index. These are the base investments one should not touch as long the bull market is in place. The most interesting investments are the junior producers and exploration companies. They are the ones with the potential for the biggest returns—as well as the biggest risks.

TGR: What other investment opportunities can you recommend?

SO: Miranda Gold Corp. (MAD:TSX-V) is at the top of my list. I like Ken Cunningham's team and I think it is one of the best exploration teams in Nevada. They are in a very established mining region and the possibility for a discovery with that combination is high. The current share price seems to offer a good opportunity for long-term Investors.


For more information visit the Company's web site at www.mirandagold.com or contact Fiona Grant, Manager, Investor Relations 1-877-689-4580.