POG and Dow

Em... Dow was up and POG went up too. This is confusing. Perhaps, it is because the USA is going to print more USD to further stimulate the economy. And hence POG, with its 'inherent' value went up, too.

The best time to splurge is when others are fearful (WB's modus operandi, after his homework). Warren Buffett spent USD5 billion to buy Bank of America recently. He got it for USD3 billion cheaper. I am hoping I did the same on 8/8/11 when I went on a rampage topping up my gold producers.

My most interesting transaction was for LSA. Between midJuly and midAug this year, I bought 4 parcels; topping up with each fall in share price. When it plunged to 70c while POG was still rising, I squeezed my cash reserve to buy the last lot. I am not able to thank the idiotic seller. The PE ratio is near 1. Lastest share price is 88c. There is still a lot of gold in its mine in Chile and more to be uncovered.

On Monday, I expect a lift in the gold sector. I wonder why WB is not tipping some cash into the big gold producers. The truth is the small ones are better value and WB has too much cash. Many explorers are rushing into production. Of late, there were ADU, PRU and SBL. And a few more cranking up their throughput.

Pity the PNG government is so erratic. Otherwise, that nation floats on gas and oil, and its soil is riddled with gold and copper. Australia should have usurped the territory! Production takes a long, long time to materialize but the rewards will be spectacular. However, I do hope these companies will show some social responsibility by investing in the locals' future. For anyone interested, have a look at KGD, HIG, GOA, FNT, MGO (which I hope to buy back one day), HGO (in Irian Jaya) and some other Indonesian miners along the same belt of gold and copper. Aunty Julia and Uncle Wayne do not live there and would be considered to be undesirable aliens there.