Lets not forget where companies such as OGC, PRU and AND were...

Lets not forget where companies such as OGC, PRU and AND were trading in Oct/Nov/Dec 2008.

At present many of the producers are hanging in OK because the POG is doing well. But if POG falls in a major downturn - everything will crumble.

Best to have some cash on the sidelines. I recommend at least 40-50%. That way if things do cack themselves we can at least get back to square fairly quickly so long as we do not buy too early. There could be a lot of false bottoms on the way down in which to get trapped.

Obviously I have no idea how things are going to turn out. So I am covering my ass - currently 50% invested mostly in goldie producers and near producers, but may raise some more cash, despite the current temptations around the market (including GRY and AMX). I am still expecting some sort of a final rebound this year especially if China does more significant stimulus.

GLA

loki (the sky is falling, the sky is falling - said some wise guy)