Jim Puplava Is Not His Tyhee.

On minute 58:20 of today’s FSN’s Q-line I asked:

“Jim,

It wasn’t so long ago when many of us were expecting skyrocketing prices from what you heralded would be the “Year of the Juniors”. When those rockets didn’t explode, Eric King told us not to sell our juniors but rather to "go out and kick a soccer ball” so that we could better endure the angst of waiting for what would surely happen.

Even the prophetic words of poor Jesse Livermore were revived to remind us to hold to the rightness of our convictions and to sit tight as we would, in the end, make the BIG MONEY that only the uncommon discipline of doing nothing could accomplish.

Jim, are you now suggesting that we leave our seats, stand up, abandon our soccer balls, and do something like move our investments out of juniors and into gold producers?”

Jim’s answer:

“You’re probably making reference to what I said about we’re changing our gold strategy Richard, and one of the things that we’ve done is that we have trimmed our juniors and we’re only keeping those that are having sufficient size in deposit (in other words, 2 million plus ounces and the ability to expand or take it to and take it to, let’s say, feasibility). Because I think these are going to be the kinds that are going to be acquired. Obviously, with the gold markets and the stock market going down as hard as it did last year in the Fall, I underestimated the degree of severity of that, and consequently not only stocks in general, but gold stocks, but I think, going forward, and I do believe that bullion is going to go up, that you are going to want to be invested in the producers, and there’s less risk there. And what has really changed a lot of this is the whole credit cycle. So, we still own juniors. But the only thing we’re looking at, other than two exploration plays that we own now, that are going to become significant deposits, we’ve trimmed back only to things, you know, that are going to have a 2 million plus ounce deposit. Because those are the only ones that could either… 1) Eventually become a mine, whether they go the route of Minefinders, where they went from, let’s say a “Greenfield”, to all the way to production or… 2) They’ll be large enough or attractive enough to be taken over. And, the threshold right now is 2 million and 3 million ounce deposits. That’s what the mining companies are looking at. So, we’ve trimmed everything back that doesn’t meet that category.”