Get ye some vampire gold!
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Time and time again, I’ve stood here and recounted the reasons why I stay away from the large cap gold miners like AEM, ABX, NEM and even GG (though I do own a little of this one from the Wheaton Gold days). Sure, these are all fine old girls, but they often end up on the wrong side of an acquisition play which then ends up trashing their stock price in a volatile gold market.
That means these big hulks are generally buyers, for the most part, as their management team has little to do but acquire more assets in order to expand away from relatively diversified and well known properties. They need new territories, fresh blood, new meat; and the highest percentage way to continue drilling on profitable properties is to acquire them from juniors who have done the sweat work to seek them out.
Well, it seems my lonely EGO has gotten all egotistical on me and wants to be a “playah” like the big boys. No more holding it’s hand out as trade bait for the majors, Eldorado Gold is officially leaving the middle-market gold mining community in its dust and going gold speculating in Turkey, Greece and Romania.
Yes, you got that right. They’re offering $2.5 bn of their own stock in order to buy a company (European Goldfields) that is looking for gold in respectively, the next Islamofascist hot spot, the First Beggar of Europe, and oh yeah, a place known for producing pickpocketing gymnasts with facial hair and night dwelling blood suckers without.
That should work out well, fellahs. Probably very little nationalization risk you’ve paid for there….
In any case, these M&A purges usually overdo themselves, so my beaten down EGO is probably a good pickup here tomorrow morning after what I expect will be a final washout. There’s support at $12, but I’m not sure we’ll get that far. Nevertheless, I’ll place my bets in that area, hoping to catch a bounce.
Oh, and I think everything else will bounce as well. Most especially earl and gold. So tomorrow, if I get my flush, I’m going to throw down for some NUGT and for some ERX.
Don’t worry, my stops will be tight. I’m not a masochist, after all.
Best to you all.
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Concur terrible terrible investment to a strong gold company. I have more faith in Big Blue’s offense….and what an atrocity that was this past Sunday.
Don’t get me started. The Giants go nowhere with Gilbride at the helm.
For them not to use their strong running game — and they were tearing off five, six yards a carry — and go Air Coryell like that, in DECEMBER, is just unconscionable.
Gilbride needs to go, yesterday. I can’t watch his offense anymore.
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We were a few rows from the front in sec 118, and by the end we were actually laughing at how terrible having two TDs reversed in a row was, then missing the field goal hahahaha.
Beautiful stadium.
The refs were certainly not our friends. The plane breaking one was especially egregious.
That said, they played like shinola, and the play calling was simply awful.
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Agreed. I can’t stand to watch anymore.
Come on now Mr. Gint, look at EGO chart without any bias. Grab a seat on the bench and let the rooks play for a bit.
It seems you may have a reading comprehension problem.
You might want to look into that before getting measured up for that Lou Gehrig uniform.
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Haven’t checked ovah theah but Cagun and I are already in DGP waiting for a pop, unless he went for a quick three-pointer and sold Friday. Are you still in AUQ? My partner, Mr. Partridge, is avoiding the PMs right now, but I bought some on that drop yesterday. If it looked like a nice buy at $9, why wouldn’t high 7s look even better?
I hate to get excited about anything in the market these days, but gold is looking pretty good this morning, since the German data came out at 5 a.m. It will be interesting to see if there’s follow through.
Are you dating Mr. Partridge?
Be careful… it’s a bull market, you know. 😉
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I still have some AUQ. Doesn’t look horrible.
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The Old Turkey is my trading partner and a darn good one at that 🙂
Gold is interesting. I can’t think of another investment that is hated or loved more. I’m neither a bug or hater but I have my reason for owning the stuff. I simply do not trust any banker, politician, broker, talking head, etc., to tell me the truth. What I know to be truth is that gold has always been a store of value. Always.
Maybe gold drops to $500 an ounce. Maybe it goes to $3000. I don’t know. But as I watch politicians around the world dick around with our economies, our freedoms, I can think of nothing I’d rather own than gold or silver.
How anyone can trust in Keynesian economics, in the Fed, in banks, in the stock market, in government, is beyond me. Those in control are all, in general, liars. They are thieves. They are stealing our futures right out from under our lives, our children’s lives, and yet no one seems to give a shit. Let’s be greedy now. Fuck the future. Save ourselves at the expense of future generations. How noble, how honorable, we are.
So no, when I read or hear that gold’s bubble has popped or that silver will correct to $5, I really could give a shit. I will continue to stack my phyzz, because I don’t trust anybody to do the right thing in regards to our economy, currency… I will collect something real. Bury it for my children. One day when we have to pay the piper the trillions, trillions!, it is owed then maybe I will be vindicated. Until then I will buy as much phyzz on the way down as I can.
I can see how that conversation would play out.
EGO: “What do you think of our find?”
Official: “What find?”
EGO: “You know, our gold find?”
Official: “…”
EGO: “…”
Official: “You see what I did there?”
Exactly. Soon visited with a head chop.
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Jake, would a short term large shot adding EXK and AG here be injudicious?
Heck no, but don’t forget about ERX.
Earl is going to see $100 in the rear view for the last time in a while….
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Jake, How did you get started following the PM’s?
I had a mentor at my original place of work who is a genius in the space, and who has accumulated a mid-nine figure net worth as a result of his work in the space.
Incentive enough? 😉
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Certainly enough incentive for me, Senator:)
Jake, Interesting you say that. My early mentors have had a profound impact on my style. They were deep value and growth guys, with a lot of patience. As much as I’ve tried to become more nimble over the years, I continue to fall back into the good habits they taught me.
Patience… find the bull market and let the cows come to you.
That’s pretty much his schtick.
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Senator – I assume you are fading the Fly on EXK?
I don’t really pay much attention to what the Fly does in the PM space.
He trades at some five times the rate I do.
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Some say that someone from the “first beggar of Europe” bought his share of European Goldfields for 15 mio eur. LOL
What is a “mio,” friend Zorba?
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