nottheSEC (74.73)

Doing well a market basket of gold juniors/mid-tiers here on Caps. They were hammered

April 01, 2009 – Comments (2) | RELATED TICKERS: NXG , VGZ , ANV

when the market went down and/or gold prices went down. I think that was a market overeraction coupled with a historical market queasiness with juniors especially since the 70-80's price manipulation and fraud. I am not a "goldbug" who believes gold will be at $2,000+ at years end but $1100 or so would not be unforseeable. That being said I see opportunity in gold and silver due to market uneasiness in choppy economic times coupled with deflationary/ inflationary worries. I have not decided on my silver plays yet. 

I believe the best way to play this sector is North American play and several producers to limit fluctuations. I would load up on CEF and/or GLD but the payoff on juniors is higher. I I have in my Caps portfolio ANV(Allied Nevada),AZK(Aurizon Mines),UXG(US Gold) and unfortunately GRS(Gammon gold). Why Gammon is being hammered is beyond me but reinforces the market basket approach to junior/mid-tiers.

I also like presently unrateable stock  NXG( Northgate), VGZ( Vista Gold), PEZGF.OB( Pediment Gold),RVSDF.PK( Riverside), ANDPF.PK( Andean resources), SFEG.OB(Santa Fe). The latter four were mentioned prominently in a Seeking Alpha articles along with orther producers. I have below a link to one such article from the fine folks at Seeking Alpha. All best...J

Disclaimer: I own both VGZ and NXG in my real life portfolio unfortunately at much higher prices. I believe current prices give agood entry point but please do your own due dilly.