You make sense. I think there may come a point if the gold bull asserts itself that chit will fly but that may be when I have already exited 75% of my position. In the meantime, my money will continue to be mostly in the majors and producers/near term producers. I ain't gonna miss this dance.
Casey has it right I think:
It won't be long before others also note the pending improvements to the bottom lines of the big gold companies. The investment herd, we are convinced, is coming and, we expect, coming soon.
How to profit?
First and foremost, you want to be moving into the established producing companies post haste. The gangway on this ship is getting ready to be pulled up.
Secondly, you should seriously consider moving some funds into the higher-quality junior exploration stocks. History has proven that, absent an exciting discovery story, the big gold stocks must get in gear before investor sentiment can reach the critical mass needed to ignite the juniors.
History also shows that as profitable as the big gold companies are in a bull market, returns on the juniors can blow those away. Exponentially. This upside, of course, comes with a greater degree of risk.
But paradoxically, this risk has been largely mitigated by the majors' slow take-off. That's because, anticipating that the gold stocks would follow the metal higher - and history shows no example of them not doing so - investors have already poured record amounts of money into exploration programs. As a result, we now know which companies have the goods -- significant discoveries that juniors have spent tens of millions to define and prove up with the clear intent of selling to the majors.
The missing element, of course, has been that, until recently, the majors didn't have enough free cash to make those acquisitions. That is about to change.
321gold.com |
