Thanks for the post Mike, I thought this thread was dormant. I'm not in ASA, have no liquidity, which is a common problem at a major low. That's one reason I think we could be at a major low for gold. Add to that the heavy negative publicity, oversold Stochastic indicators, a heavy volume sell-off Monday, too many analysts forecasting $250 or less (including Prechter), and you have the ingredients for a massive advance. Still, we could be wrong on the timing even if we're right on the direction. Options are a tough play for me; I'm no better than 50:50 on correct purchases, and probably less on profits. If I had the capital, I'd buy the South African ADR's directly. It doesn't have the same leverage, but if you're wrong, you can hold the paper for a rebound. Options just get worthless in a worst case, which you likely know. Dividends on the mines should be good as the advance resumes. You won't find many dividends in North America worth talking about, which is why I prefer South Africa.
Dale |
