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Gold/Mining/Energy : Blue Chip Gold Stocks HM, NEM, ASA, ABX, PDG -- Ignore unavailable to you. Want to Upgrade?

To: TheSlowLane who wrote (12321)	12/7/2009 10:10:43 AM
From: Tommaso	Respond to of 48092

My most unforeseen margin disaster was many years ago when I figured I could borrow on margin then at about 6% and get better than 10% return on royalty trusts. Then the stock dropped a hair below $5.00 a share and suddenly my whole position was declared unmarginable. So even though I had about 80% equity, I got a huge margin call and had to sell to cover it. I sometimes allow the cash trading account to swing into temporary deficit of about 8%. Actually it's much less than that because some very large pink sheet positions are not marginable.