POG

One moment, it is climbing and next moment, it is plunging. I suspect the desperados were the sellers and the Chinese were the buyers. You buy when you have spare cash and if idiots had to dump their best (currently) performing assets to realize cash, then it will have to be gold.

Gold will usually find its own value. Too high, people will start cashing in their inherited gold, central banks will see an opportunity to offload their hoards or more high-cost gold mines will restart. Too low, high-cost mines will cave-in, central banks will re-accumulate and people will start buying for jewelry or investment.

My problem is how to spot the trend... but as long as the value is much higher than what it costs my miners to produce, I am a happy lad.

PRU is worth under AUD$1.4 billion and soon it will be churing out 400,000 oz of Au per year. The other great news is that it is still finding more gold. I topped up at $2.52 on 3/1/12 :-) I have to thank the seller who sold after the multiple good news posted by the company. I would say ABU remains my future GIR, judging from the better multiple good news it has been churning out. It took so many postings of GIR and goadings before some of my readers of my old emails forked out some money to buy it. Of course, great trenching results do not necessarily translate into good JORC resource figures. But I based my expectation on logic and extrapolation. Do your own research. I did top up ABU twice late 2011 at 5.5c and 5.7c. And GUF at 67c at the same time. With the upturn in the ASX, I have done well with these last 4 purchases. Maybe, I am still smart... temporarily. ASX might start to run downhill; inshallah!