I agree with the possibility of a drop to at least around $1000 in the price of gold. Consequently, even now I am in about 30% cash. Actually, I use this cash to do my short term trading and hoping not to get caught out by a sudden decline.

I've been able to buy Maudore as low as $3.91 in the past few weeks and I've been selling at anywhere from $4.30 to $4.40. I bought SGR around $3.39 a while ago and have sold at $3.69. The nice part about this is that even if you get caught holding these for a while, they are still good buys in any case (barring a real drop in the price of gold).

I first bought SGR for about $1.10 in late 2008 so it has done well for me since then. MAO has been a relatively recent discovery for me but I have a lot of fait in it.

For me the real mystery is that if/when the rest of the market goes for its next big drop - and I'm fairly convinced that this will happen - will gold mining shares also hit the skids like in the fall of 2008 or will investors realize that the $US is not the safe haven anymore but precious metals really are? Some analysts think that gold shares will hold up this time around. I'm not convinced but would like that to be the case.