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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: NOW who wrote (22092)	11/20/2004 10:36:51 AM
From: Wyätt Gwyön	Read Replies (4) \| Respond to of 110194

my opinion of gold miners is only slightly better than my opinion of semiconductor companies and airlines. as Mark Twain said, a gold mine is a hole in the ground with a liar standing next to it. like the airlines, as an industry the miners have been very successful in destroying capital. but obviously, like the semis they have a lot of beta and there are times when i think they can be profitably owned with "businessman's risk". i sold out of my gold stocks around this time last year as the market went into "silly season". i decided i wouldn't buy again until there was such a selloff that i could "see the whites of the eyes" of future profits. that selloff came this past spring, and i took a decent-sized position in a bunch of juniors. i didn't bother looking at them again until a month or so ago, when i noticed they were up 28% as a group since i bought them. then one month later (two days ago), i noticed that the profit had doubled to around 55%. just like last year, when i had all these little stocks i barely knew anything about, but they were up 60%, 80%, 130% in the space of a few months. i guess the advent of GLD and the goosing of POG is the proximate cause? who cares, i don't look a gift horse in the mouth. like last year, i probably again sold too early (-g-), but i will leave the last month or whatever of table scraps to the scalpers. if i am wrong and they all go to da moon, then you have my congratulations. but the one thing i am pretty sure of is that within the next year, there will be an opportunity for me to buy a bunch of these companies at much cheaper prices than today.