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Gold/Mining/Energy : GDXJ - Market Vectors Junior Gold Miners Index -- Ignore unavailable to you. Want to Upgrade?

To: orkrious who wrote (113)	11/14/2009 9:49:45 AM
From: carranza2	Read Replies (1) \| Respond to of 196

The only thing that has changed since 11/2 is that the Mexican EPA has indeed revoked its environmental authorization. I don't know what will happen going forward. I don't know if the opposition's claim that there are no longer any legal remedies available is true. I do know that the story is far from over. A few articles about the NGD operation from the local newspaper for those of you who read Spanish. My takeaway: NGD indeed has a world class operation in place. The mine has been a very good thing economically for the community. The vast majority of the locals, including the Cerro San Pedro municipal government [which is bankrupt] favor it but it is unfortunately a game played at the federal level; vastly different con$ideration$ apply there, if you get my drift. My cynical take: someone or some group is out to fleece NGD because the mine will have a substantial gold production at a time when gold prices are rising. Why the mine was ignored since 1948 is a mystery; the authorities at the federal level will take their illegal cut and let the mine operate. I hope these Canadians can deal with these things. I suspect they can; there's moolah enough for everyone. This too shall pass. I am not selling. oem.com.mx oem.com.mx oem.com.mx oem.com.mx

To: orkrious who wrote (113)	11/14/2009 11:49:32 AM
From: Tommaso	Respond to 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%.