Jay: Canadian diamond stocks will cure any case of Bored
Investor Decision Syndrome (BIDS)--a mild malady of the monied class, but still one that merits treatment.
Take several of the following as a portfolio cocktail, well-mixed. They allow you to party wildly within the portfolio, thereby sating destructive boredom-driven urges, such as buying bad tech. Side effects include waking up to huge returns or evaporation of investment. I own 'em all, despite my uncertainty about how long guys will be able to pay the prices they have been for shiny colorless stones:
DDN.V--Diamonds North (big Northern Canadian land package)
SRM.V--Shear Minerals (lots of kimberlite finds to test)
GEM.V--Pele Mountain (just backed by DeBeers; nice results)
ADD.V--Arctic Exploration (a bet on stellar diamond explorer Chuck Fipke)
TWG.TO--Twin Mining (gold and diamond play)
CVV.V--Canalaska (microcap gold & diamond speculation)
CSI.V--Oasis (rank diamond speculation)
SOI.V--Sirios (gold & diamond speculation)
My technique is to buy little enough that a wipeout doesn't hurt much. I also expect that if just one of my microcaps makes a diamond mine, I'll make out very well overall no matter what happens with the other diamond stocks. In fact, I'd be cutting losses and taking profits on the way up and down, further balancing speculation with return.
There are also much safer diamond stocks I have owned and may again, that are already have well-defined resources:
EET.TO--Etruscan (also building a West African gold mine)
DFI.TO--Diamond Fields (marine diamonds, but now various minerals also)
And then there's one best-odds speculation I haven't bought, but will if next results disappoint, and the market reacts more negatively than I do:
SWY.V--Stornaway, successor to Northern Empire, and well-diversified with at least 2 major land packages with kimberlite pipes and/or dikes.
Kimberlite is the material that carries most diamonds from their deep Earth formation zone; it "emplaces" them in pipes, often via surface eruption and/or erosion of groundcover over eons. |
