03/28/2013
December 3, 2017
01/26/2013
December 3, 2017

03/06/2013

Hey Kuppy,
Are you surprised we haven’t seen a buyback or any insider buying at these levels in EGD?

Not really… Unfortunately, the guys running EGD aren’t focused on returning capital to shareholders at the bottom of the cycle. That said, in retrospect, they seemed smart to raise capital at the top of the cycle….


I am a little confused by your email.  Now that the laws are changing have you again initiated a position in the company {BNGOF} at these prices???

I have no position and no intention of building one. I am only looking back at a loss. The trick is to learn from your mistakes and the recent law change has made me re-visit the investment and try to learn from it.


Is it time to buy (more) gold? I see from Leather Apron Letter that hedge fund gold holdings are at a low for the past half decade.

Thanks for all your good work in Mongolia, and willingness to share your thoughts!

I think that if you buy gold today, you’ll be very happy with yourself in 5 years. I just don’t know how you’ll feel in the next few weeks/months. We’re in the process of putting in a low. But when gold is wounded, it’s capable of doing all sorts of wild things to the downside.


Kuppy, a few ideas popped into my head as I did my weekend reading:

1) Will EGD finally earn $1 or more in 2013? Am I crazy for not wanting to diversify and to add to my already huge position? My thinking is simple: with the acquisitions finally taking hold & mineral exploration at a trough….. Really good times are ahead.

2) the idea of 5x in 5 years. How could leaps (2015) in Select gold miners not make an investor giddy? Sure, these are dark times, but math is math, and the debt of the world will continue to pile up and gold will rise. To boot, as cheap energy continues to arise in North America, the miners biggest expense will ease somewhat. I’ve taken a stab at leaps in AEM, GG, NEM, & PVG. Pray for me 🙂

1- I don’t think EGD will make $1 in 2013. The slowdown in Minerals will certainly hurt them for earnings. Then again, at a bit over $2 a share, you don’t need much to go right for this to be a great entry point….

2- Every time I’ve wanted to buy miners, I have had buyers regret… One day, it will work, but I don’t know when. They sure are cheap at these levels–and implied volatility isn’t high either… It could work, but I really hate buying options. It’s just not how I operate.


When will gold bottom? Will it bottom?

I think we’re in the process of building a bottom. I have my core position that I never trade. I have also added to my trading position. However, that doesn’t mean that we cannot have one final flush first…. Based on sentiment and angst, I feel that we’re getting close to the final capitulation–if it hasn’t already happened.