Hi Orange Flash. I got lucky in the financial crisis, because I had over 30% in cash. I went all-in during the crash. I was a little early, but after the rebound I did quite well. Once, I got significant price appreciation, I started selling again to build up my cash reserve to 25-30%. When the market started correcting after Xmas, I slowly started buying again. I am a bit of a silver bug, so a fair amount of that was silver. I got down to about 5-10% cash. With the market heading back up, those are looking like good moves. As far as where the markets are going, the 2 things I watch for are real interest rates and the US and global debt. With the US debt being so high, they cannot raise their interest rates to a more fair figure( that is fair to savers). I think they have to print money to fund their debt.
I had some little old lady explain to me a couple of weeks ago that she bought gold because her German friend explained to her what happened in Germany in the 20's. This concept is barely catching on in America. Combine that with humungous growth in Chinese demand, and I see no reason why gold will go down in the long run.
I like to have a range of PM companies, from exploreres to Senior Producers. I am hoping that the bulk sampling comes in at 3g/t or higher, and then we are all in the money. Our other avenue to be profitable is for gold to go up enough that we are still viable at a lower grade.
Bob
