sit through it - when you buy a junior, particularly in the gold industry it will fall 30% at some stage during a year. The question will be whether you'll be around for the next up leg which will run harder than a 30% gain (may be add a 0 to that!).
The question you need to ask yourself is has anything changed with the company fundamentally to make you want to sell. Do you believe gold is at the end of it's secular bull market (it's still above AUD 1000 / oz!!).
If the answer is no to both then hold tight.
I think this is an important phase for the markets. Blind selling across the board today - mainly due to fear and margin calls. If the gold price starts to go higher, it will be under the spotlight. All that money that was in banks, retailers etc. will realise gold thrives in panic & fear, and will be the recipient of a flight to safety.
Look to last September where the Fed tried desperately to push gold prices down prior to a big rate cut (and look what happened subsequently). All they've managed to this time is get it from $910 to $860 (still ready to pounce to $1000/oz).
Aren't many quality gold juniors around - this is one of them.
CQT Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
