haha
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
As of Friday, I am down to $10,000 in gold equities. And $6500 of that is one stock that has received a cash tender in a friendly merger. I didn't really time the market; just one by one my small explorers were taken over.
One former holding, MNG, was selling at quite a premium to its bid, but it was a friendly takeover and there was no alternate bidder in sight, so on Friday I decided to sell out. Another, GAB (Toronto), was a rank speculation that went bad, but I had bought it so cheaply that I still got a 100%+ profit. Earlier it had been up 500%, but I felt it could eventually be a big winner. A week or so ago the company made a filing that said that their one and only mine was unlikely to be built unless the government of Romania was thrown out. Say what? The Romanian government would have to be changed? I suppose it may eventually happen, but by that time this company will likely be out of cash.
I get so inured to outrageous situations investing in small gold explorers that I was slow to catch on that this one was beyond rescue. Looking back, there were many opportunities to think it through and get out at much better prices, but I blew right by.
This is what makes speculating so addictive. Better thinking does lead to better results, unlike much of life where better thinking just gets you into more trouble. Over the years I have taken quite a bit of change out of the gold equity markets. Or more precisely, taken change away from some latecomer investor (likely an asset allocator ).
If there is a large down draft in that market, I may look for replacement candidates. Otherwise, I am out of gold. I never liked it other than I thought there were speculative possibilities. I am better attuned to the first half to 2/3 of a speculative move than to the last part.
It's nerve wracking though. Earnings always stink, there is never any income, governments are always throwing up roadblocks, expropriating, etc. However, over time I think this last aspect alone will lessen the supply of newly mined gold, and improve prices for the metal itself.
Ha
One former holding, MNG, was selling at quite a premium to its bid, but it was a friendly takeover and there was no alternate bidder in sight, so on Friday I decided to sell out. Another, GAB (Toronto), was a rank speculation that went bad, but I had bought it so cheaply that I still got a 100%+ profit. Earlier it had been up 500%, but I felt it could eventually be a big winner. A week or so ago the company made a filing that said that their one and only mine was unlikely to be built unless the government of Romania was thrown out. Say what? The Romanian government would have to be changed? I suppose it may eventually happen, but by that time this company will likely be out of cash.
I get so inured to outrageous situations investing in small gold explorers that I was slow to catch on that this one was beyond rescue. Looking back, there were many opportunities to think it through and get out at much better prices, but I blew right by.
This is what makes speculating so addictive. Better thinking does lead to better results, unlike much of life where better thinking just gets you into more trouble. Over the years I have taken quite a bit of change out of the gold equity markets. Or more precisely, taken change away from some latecomer investor (likely an asset allocator ).
If there is a large down draft in that market, I may look for replacement candidates. Otherwise, I am out of gold. I never liked it other than I thought there were speculative possibilities. I am better attuned to the first half to 2/3 of a speculative move than to the last part.
It's nerve wracking though. Earnings always stink, there is never any income, governments are always throwing up roadblocks, expropriating, etc. However, over time I think this last aspect alone will lessen the supply of newly mined gold, and improve prices for the metal itself.
Ha