what to do if slr hits $2.70?, page-88

Elze

"and here we are now at or near the low (providing gold holds up). I didn't think I'd be able to get back in at these prices again. If it goes lower, I'm not worried, because I think it'll be very short lived."

Unfortunately I think that we are getting a negative re-rating across the goldie sector, with the explorers dieing off first and the producers now being told to provide an income stream or else why hold them.

This could last another six months or more, until the POG is headed north of $1800/ounce, which is what I think will happen once inflation takes off around the world.

The only goldies holding up reasonably well are the very low cost producers - RRL and BDR. MML is supposed to be a very low cost producers but I have yet to penetrate their reports to work out what their real costs are or may be in future.

SLR got another shaking today - down to $2.41, so support at $2.50 may have broken down for now. Shorting of SLR and many other goldies has fallen off, so I assume it is the fundies reducing their exposure to the gold sector that is pushing their prices down. They seem to be trying to do this in an orderly fashion, but there are too few buyers so the share prices can fall quite a lot.

Expect a lot more shorting in April/May and again in July/August around the quarterly reporting period.

There could be some real bargains later this year among the gold producers for anyone with any stomach and funds left to buy them.

The galling part is that young skol was right, TLS has been where one should have put ones money over the last 20 months, and the banks.

loki (ouch, my 'folio looks sick)