GOLD RUSH

[Caradoc]

Quick 10-bagger? Nope, better than that

Markets always over-react, and we all know why GG was underpriced as of yesterday:
* Barrick's anti gold stock article
* People ticked at CEO for cashing out a third or so of his position
* The real killer: people stupidly ticked at GG for having sold metal for more than they would have gotten if they'd sold it as they produced it like every other gold mine.

So, underpriced yesterday before gold finished its 10-year "ladle" pattern ( http://www.kitco.com/LFgif/au3650nyb.gif ) and began its move upward. Even more underpriced today because today's increase in price of gold did phenomenal things for the value of GG's biggest asset: gold still in the ground at the world's richest gold mine. AND THIS INCREASE IS ONLY PARTLY REFLECTED BY TODAY'S RISE IN GG!! Do some research in the archives of Sinclair's Mineset site http://www.jsmineset.com/home.asp for why gold's move will continue (and take GG with it!)

There ain't no rush like a gold rush, and the price of gold has only begun to move. I see 430 within a week, 500 during February, and really big numbers thereafter. Throw in the history that precious metal stocks do 5 to 7 times better than the underlying metal when the metal makes a big move.

So, GG is a steal at current price but (because markets try to be "orderly") there's even more money to be made in GG options.
For example, when I started writing this January calls at $15 (good until Jan 17) were at ask of $1.30. With GG then at 16.21, the calls were already in the money by 1.21. $15 strike price plus 1.30 for the option = 16.30. When you subtract the then-current 16.21, you find that they were only asking a lousy NINE CENTS for you to own whatever happens to GG's price over the next couple of weeks. Bleepin' incredible opportunity here since if GG goes to 18.21 you'll make 2 dollars on your 9 cent investment. If it goes to 20.21 you make 4 bucks for your 9 cents.I won't take time to figure how many thousands of percent profit that is and you shouldn't either. Just place your order.

The example I gave (March $15 calls) is GGAC (GGAC.O if using Schwab). During the time it took to write this, GG went to 16.27 (up 6 cents) and GGAC went to ask of 1.35 (up only 5 cents).

Just opinion, but I've got my money where my mouth is. Also got a small pile in CDE March $5.00 calls which I bought at 1.10 and 1.15 a week or more ago. These were up 70 cents today to bid of 1.90 and ask of 2.00. Nice, but I'll be making bigger bucks when I cash in some GG options on 16 or 17 January. What will be even sweeter is exercising some of those options and having the privilege of buying an 18- or 20-dollar stock at strike price of $15.

Caradoc