Replies to post #185767 on Zeev's Turnips Patch-No Politics (ZEEV)

[kahlua]

Dan
I appreciate your suggestions and I agree as to the $CAD supremacy over the USD. I'm still holding some AUD and CAD cd's in my "conservative" account for the next inevitable leg down in the USD. I will do some reading on sur.v this coming weekend. Glad to see I'm in good company with the gold juniors I'm looking at - your bgo also looks like a winner. Thanks again!

Regards
Kahlua

[nspolar]

basser, I don't think it matters whether you buy MAE.to or MNG, if you are purchasing in US dollars. In fact you would probably be ahead purchasing MNG, due to losses via the exchange mechanisms.

These two liquid issues should always nearly reflect an approximate equivalency, via the current exchange rate. If the US dollar continues to fall, and MNG/MAE.to continue to rise, MNG should rise more, in % terms.

Illustration of Jan 2002/Present Prices and Profit Ratios:

MAE.to: 3.34/.78 = 4.28

MNG: 2.54/.49 = 5.18

The difference between 5.18 and 4.28 is due to the falling dollar, relative to the Canadien dollar. A purchase of MNG in US dollars takes advantage of that quite nicely.

I'm a large holder of MNG by the way.