The POS is actually approaching a short term buy point. Very
oversold. Strikes and earthquakes might happen to it every
quarter, I don't know (after all, this is THE POS of all
POSes), but typically those are pretty rare.
A nice cash cushion was built up against these, but it does not
have a cushion against price of gold itself. -g-
Nevertheless, it is much safer to buy it once it starts actually
going to da moon and breaks out of long term downtrend. The
POS is more than 20x leveraged to price of gold. The breakout
level is around 9, and yes, it can go to 100 or even 200 if
gold flies. Of course, that is a question. Gold will fly, but
will it do it now?
FWIW, SA gold stocks are all very, very cheap. South Africa
is still home to 50% of global gold under ground, even though
their share of production fell enormously due to various
issues, not limited to, but including the high price of rand
and oil. Oil in gold terms was very high in 2005-2007, but
not so much lately. About average, historically. High
price of oil in gold is the key reason why miners
underperformed gold prior to the crash of 2008. IMHO.
2007 was a historic record. |
