don't (can't) break the china folks: it's gold?dmj, page-130

Long term bullish, assuming the East maintains the status quo and gold production tapers off, which it will as reserves shrink. But I'm not convinced that this break out is the end of misery for the producers just yet.

IMO, choose gold stocks of lowest risk. Means multi-mines in tier 1 jurisdictions with decent margins. I've been saying this for 6 months since re-entering the sector last November and NST and EVN have had terrific runs in that time, bringing my core basket up over 100% in that time. If POG falls heavily again though, perhaps everything will take a breather. So stops in place from here.

Well chosen higher risk stocks give the most rewards at the right time. IMO, now is not that time. The market is still cautious, so a strong P/E and production life are being rewarded. When the market is ready for more risk, then oz in ground will achieve greater values. Those values are coming off a base, that at the moment is as low as zero dollars per oz for many projects. As the capital markets are freed up to fund getting that gold out of the ground, and the market also believes that gold will come out of the ground, then the more gutsy punts should reward.