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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (94621)	9/15/2012 1:02:48 AM
From: TobagoJack	Respond to of 219940

Hello c2, (i) I cannot do the dd on the too-many juniors, and i cannot distinguish too finely all-of-some-merit seniors. Given the overarching macro vectors I have imperative to own gold mines and gold exploration companies. So I have difficulties, to engage with what i cannot know, and in some large allocation. So I gather gdx, gdxj, and stay with the largest and they be Abx, nem, and paas, because they are leveraged plays on gold, and shall fully express themselves one fine day. (ii) I also have strong desire to own gold and silver exploration companies, and they are smaller, with more complicated stories, and require quite specialized knowledge to understand. The exploration-on-the-cusp-of-production companies also have a financing risk, above and over all other risks; and because of such added financing risk even as the lessening of 'find gold' risk, the valuation of such companies may be 1/4 to 1/2 the valuation of already-mining juniors. These companies often are private or very illiquid 'publicly-listed private equity' companies, and it is very difficult to have a diversified basket of such companies. I am counting on FNV and SLV to wisely select worthy counterparties to finance via royalty agreement. As and whenever FNV / SLW choose to fund a junior gold exploration company transforming to junior gold production company, the financing risk is either lessened or completely removed. I want to enjoy the earliest 2-4x on the feeding chain, but I do not want to do any work. (ii) whenever market cools for the juniors, especially if market also cools for the seniors, that is when FNV / SLW make the best deals. Cheers, tj