SmurfVA's Random Picks

[Sheep]

Sorry for the longish reply... This is a subject I have a lot of opinions on.

Ned I don't really buy miners too much, but I think that they are way undervalued. I think when we see the economy really crack the money I invest will move to mining vs. biotech.

One concern to keep in mind is that the price of gold and silver right now make any profit on mining very very slim. The vast majority will record a loss, and we will probably see some consolidation with the bigger minors buying the smaller ones. I know that some minors are on the verge of having to shut down until prices uptick. The chart on GSS does look like it could be coming off bottom and getting ready to try and break that resistance at .54. My warning would be this, if the company is going to report earnings anytime soon I would not want to be in that stock unless I had done some major DD.

That said the rebound in gold/silver prices will be sharp when it occurs. Now that minors have started to slow down operations it will just be a matter of time until the lack of new gold entering the market will start to cause an uptick in prices.

Right now I am sticking with biotech for the most part. It is a very hot sector where for many minors have lost their sex appeal.

My hope is that gold will get close to the $1,000 range this year. When that happens I will be a heavy buyer. That said if gold does move south like many believe the minors are going to be in real trouble.