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To: Activatecard who wrote (915)	11/18/2009 6:39:33 AM
From: Real Man	Respond to of 990

Yeah, electricity hikes and strong rand. Gold went to 1931 lows in Rand, inflation adjusted. SA miners still own the property that mined 40% of above ground gold. It is just not profitable to mine it, as we can see with the POS - they have serious troubles with their last active underground operation. We are not talking small hikes, 45% per year for 3 years. I guess, get platinum. The effect will be even more spectacular, since SA produces most of it.

To: Activatecard who wrote (915)	11/18/2009 12:53:08 PM
From: Real Man	Respond to of 990

The POS is selling for about $3.1 per underground Kruggerand Oz. While it traded that low for some time due to the bear market in SA gold shares since 1980-s, the potential for the POS to move up strongly in gold mania exists. The strong move in SA shares should be commensurate with HUI move from 35 to 500 since 2001. If POS does not go broke, that is. They are close, but they should be making money again now. While Canadian and American miners (that also make most of GDX and GDXJ) are now cash machines, they are valued as such, so they don't offer as much leverage to POG as SA miners do, as their prices per M&I reserves are already quite rich, but they do have more risk than POG itself.