what happens to the $/us if ....., page-13

.... to and for jebigadre ..... Hi Je,

Yours - "Just as an aside DUB, you have been a consistent gold bull for a long time (as I have been - I've held a large stake in LSG for nearly 2 years now and have posted on them, which can be seen using the search function), I just would like to know what you like as the optimum leverage to the rising gold price. Are you holding Aussie gold stocks or something else.?"

I'm reassured by stocks that are Australian and have their operations in Australia. Whilst there are still lots of risks with them, the political/geographical/national risks are much less to my mind.

On the other hand, I think DRD is a standout. I'd love to be holding it at present, but would have to sell one of the few I'm holding to buy, and I'm not sure if I want to do that. Nevertheless, here's copy of text of an email I sent yesterday to a personal friend -

I sent the following to you on 17.12.3 after suggesting on the previous day that DRD would be a good thing for you to buy .

At that time, DRD was selling for 3.50 and did so until 19th.

DRD closed at 5.20 today (a gain of 48.5%).

DRD is going to rocket IMO - but I don't have any since I have no cash.

sigh ....

bye.dub


----- Original Message -----
From: dub
To:
Sent: Wednesday, December 17, 2003 4:51 AM
Subject: Re: gold - heads up No 2


Hello again,

I want to take back my advice re DRD. You really can't afford to lose, and I don't want to feel responsible for your choice.

And so, I'm changing my earlier message to:-

" I believe that if I'm prepared to invest and wait for up to 6 months, I'll make 100% on my money if I buy DRD soon."

bye.dub"

But your specific question related to leverage. It seems the biggest gains in a gold bull market will come from junior explorers with good prospects - and if they announce good findings they might just explode.

Now, I've lost $s (in the 6 figures) over the last 6 years mainly because I fell in love with XEN but also because I believed gold would rise much, much earlier than this.

The losses have taught me to avoid sentiment and discussion, and to rely on TA once I've chosen (on fundamental and technical grounds) a stock to hold. So, like you, I like LSG and had a significant % of my money in it - but I sold it all at $2.41 on TA and bought more MMN.

I had a substantial investment in GTM/O - but on TA sold it all at 3.4 (and won't be going back in).

I liked TKR and had quite a bit tied up with it. I still like it (although I'd prefer they carried no hedging), but sold all my holdings, again on TA, and put the money elsewhere.

Now? Of all the assets I have, cash is 30%, physical silver and gold is 20%, and gold and silver stocks the remainder.

I believe silver will be a much, much better investment than gold in the medium-long term and so have most of my non-cash assets tied up in silver. Even the 2 junior explorers I hold (because of good fundamentals, good findings thus far and good TA) have reported significant silver finds apart from their gold ones (ARX and HAV).

These juniors only account for 25% of my stock investment. All the rest is in MMN/MMNOA.

But, back to the start - I've lost lots of money on the markets because of my beliefs. I surely recommend that nobody should take notice of what I'm doing.

As to you Jeb, well, you did ask.

Leverage - good junior explorers. Sure gains - DRD, NEM and good silver stocks (MMN for mine).

bye.dub

ps. I realize that MAR rose 30%+ yesterday. The announced finding of 5.28g Au was a bit impressive, but the actual report should be read to see all of the figures before one gets a (30%+) buzz for mine. JFWIW eh.