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Message: Re: Money and the end of Juniors
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Sep 28, 2008 03:02PM
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Sep 28, 2008 03:18PM
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Sep 28, 2008 03:31PM
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Sep 28, 2008 04:13PM

Re: Money and the end of Juniors

posted on Sep 28, 2008 04:47PM

I'm pretty nervous about it as well. Let's face it, we're all just exhausted. However, there is a potential out to all of this.

First off, I believe that gold is heading for $2000.00. No it won't happen right away but yes it will happen. In the last couple of weeks we saw gold jump dramatically as uncertainty increased. Perhaps the next few days will cause the markets to settle and everyone will breath a little sigh but it's going to come right back and next time we all know is the final knockout.

If 1 Trillion doesn't do it... it's over. The public isn't behind this. I don't think they're ready for another Trillion and that won't be enough anyways. Faber said 5 Trillion. I think he's right.

So conditions favor gold hitting $2000.00 per ounce in the next year. Agree on this and you have to agree that Juniors will go up from here. If gold hit's $2000.00 per ounce the producers will be entirely awash in cash. The industry will be abuzz and given what the rest of the world will look like for gold to get to $2000.00, people will be interested in investing in these juniors.

Keep in mind that there is a lot of money sitting on the sidelines still. It will get invested eventually... if gold is 2000, be sure this stock will not be 20 cents. Maybe it won't be $2.00 like we all hoped but it will be higher.

In the main time, I do think it's worth getting into more physical, more producers and CEF. I went long on US financials last week hoping for a short term gain but plan to take profits very quick, if the bailout brings them and soon I'll be going short again matching that with gold. This week should be one of the last opportunities to get gold in the 800's. I am certainly using it as a buying opp.



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Sep 28, 2008 05:15PM
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