Zeev's Turnips Patch-No Politics (ZEEV)

[basserdan]

IAC,

you wrote,
"I like KGC and WHT here the best. I'm avoiding South Africa plays due to polital, economic, and nationalization concerns."

While, imo, not "the best" of the miners, I agree that those two have considerable upside in the future. <g>

Where I do not agree, however, is with your view of the "South African plays."
I believe your rationale to be little more than outdated "conventional wisdom.

If I may repost a missive sent to Mainehiker.....

You're comments will be most welcome if, unlike last night, you keep your pistols holstered. <GG>

Mainehiker wrote:

"im comforted he mentoned hmy/gfi two SA miners i own..even though many are worried about the political impact there..i think the bullishness in gold at least for now, counteracts that"

My response:

"I fully agree with your take on the SA Gov't's decree of the future divestiture of a relatively small % of the mostly White owned South African mines to the native South Africans. At least those who can afford the ante, of course, as the new minority owners will still have to pay for the privlege of ownership. <gg>

This is a multi year plan and must be termed, imo, as still a work in progress as the SA 'powers that be' have already relaxed the proposed divesture criteria on two occasions that I am aware of.

I believe, that as the POG heats up, the enormous SA gold reserves, even with their higher extraction costs, will be far more more important to their shareprice than some future minority ownership equation. And yes, that is my final answer. <vbg>

GFI and DROOY are prominent in my Gold portfolio.

FWIW, I think that the continued strength of the SA Rand vs the USD is likely to pose more of an intermediate problem for the SA share values than the 'ten years down the road future ownership' criteria, but I believe this too will be swept away in the enormity of what I proffer will become a global epidemic of Gold fever."

It's your money, IAC, and I realize that there are many 'golden' opportunities out 'there', but to totally dismiss the enormous potential of the SA miners' proven reserves because of reasons that no longer appear to be particularly valid or timely seems to be a bit short sighted to me.

All IMHO, of course.

enjoy the weekend,
Dan
















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