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Gold/Mining/Energy : GDXJ - Market Vectors Junior Gold Miners Index
GDXJ 93.63-1.4%Oct 31 4:00 PM EDT
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To: orkrious who wrote (113)11/14/2009 11:49:32 AM
From: Tommaso   of 196
 
You are most likely correct.

But do not underestimate the capacity of Canadian environmentalists and humanitarian activists to interfere with the workings of a successful Canadian enterprise. They drove Talisman out of Sudan.

I can imagine the Mexican government taking over the Cerro San Pedro operation with pledges of preservation and remediation.

There is no question that the mine is a blight on a landscape of extraordinary beauty. I have not been there in many years but I did once spend a night in San luis Potosi.

Not knowing how this will play out, I have reluctantly restructured my gold portfolio, which had been over 50% in New Gold. I consider myself lucky to have been able to do this and find that I have only lost about 2% from what it was worth a few days ago. If New Gold can keep this mine in operation, their stock ought to triple in the next 2-3 years, and even if they lose it completely, the stock could still double.

I am retaining a New Gold position in an account that I set up for my daughter and which I manage. To sell would have tax consequences, and also she can afford to wait longer than I can for New Gold to develop. Most of that account is in GDX, but the New Gold position has increased by 321 % (more than quadrupled), while the GDX has increased "only" 179%.
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