San Gold Corporation

I listened to the most recent KWN interview with Jim Sinclair. He figures the best way to send the equity shorters running for cover is if the Gold Producders start paying out some dividends. Goldcorp now pays a monthly dividend, however they could probably start paying a lot more when gold reaches these kind of prices. I have done a little thinking on my own and I can see one problem with producers and that is when you sell gold you make income, however you are also depleting you reserves. The high cost of finding and developing replacement reserves makes it difficult to pay out much to shareholders. This is why I am still sticking with SGR. It is that they will be able to explore and add ounces by producing and using their own cash to do so.

This is the link to Jim Sinclair interview.

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/6/8_Jim_Sinclair.html