The New CS Board

[jumanji0881]

re: Why the miners

Why gold miners? Every time I think of miners, Bre-X comes to mind. Look at a ten year chart of gold and compare it to HUI or XAU. I say buy the metal not paper!

My response: Leverage. The stocks are leveraged to the price of the metal and the warrants are leveraged to the price of the mining shares. Bre-X was a real blessing in that it ushered in some standards that all miners must meet when reporting results, namely the NI43-101 standards. I'll stay with the miners. The real profit potential in the miners is in the exploration companies because when they produce good drill results, the shares can explode higher. And the warrants really magnify the gains in the share price. I bought 80K NGD 2017 $15 warrants in 2008 for $0.18 each and they have been over $5.00 each since then. That's far more than the increase in the POG during the same time frame.