for the ones that cant think, page-20

That's the shot, Nobby. The market in the past fortnight would have inflicted a world of hurt on you if you didn't bring the utmost conviction to your positions.

I've been temporarily way out of the money for, oh, all of a week now, and I'm looking to dollar cost average some more into PRE at below .054 while I still have the time. No free rides now, but commitment and foresight will be rewarded in select gold-sector investments. IMO, PRE has got itself some mightily prospective real estate and, I now know, some supportive micro-cap insto coverage.

I, too, received the Cygnet capital report. One of the most important things that I take from that is the PRE has a successful funding track record with them ($1.6 million in February 2007) and that on-going coverage will flow. This against a forecast 2-3 years of a fundamentally supportive gold environment as seen by Newcrest's CEO Ian Smith (AFR, 25-28/01/08: 33).

One of the most explosive things to look out for now is a medium-term reversal in Chinese monetary authorities' tightening stance. With a very high marginal propensity to save, exacerbated by pronounced asset market pullbacks in residential property and equities, Chinese authorities may well move to shore up endogenous aggregate demand by pausing and even easing their erstwhile tightening stance. There is a lot of liquidity sloshing around the world, it is being added to, and its impact is inflationary.

Volatility in the spot price of gold is a given, but the upside to gold and the gold sector has a very long way to run, IMO.

Best regards to holders. PD