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Monthly Digger - January 2011


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They say catching 50% of a move is a good thing. Doesn't sound like a lot until you have to live through another correction. Cash is a position. Practice holding 10% in cash by selling for profits. Just because you have cash doesn't mean have to spend it. You might get used to the fact you are making money even while holding back cash.

 

This trading/investing thing is more of an exercise of looking at yourself in the mirror to see how you react when you are in the money or out of the money.

 

If you think the fall continues, sell on any (intraday) bounces, take profits more often, leave a core, sell it all, do something. With cash, you can always rotate over to lagging stocks if a run up commences.

 

A chart may not show drifting down until June, I don't know, anything is possible but I would understand it fundamentally. I'm 10% cash now could go to 20% cash, miss a move up and not even care.

 

 

 

Thanks Whadda I Do Whadda I Do'

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Anyone have any comments on OGC, Oceanic Gold? They are being challenged by Human Rights organizations in the Philipines.

 

I'm not sure if this is one of those woodshed moments that Dharma refers to, or is it being dragged down for a good reason.

You mean Ocean Gold Corporation OGC.nz?

I don't follow this one, I think Ageka owns some.

 

Quick read says they are treading water trying to replace what they mine so to lengthen their life span. Like some miners, restarting past mining operations according to the spot prices. They are producing.

 

Their problems on the island seemed to be shared among other producers: using water needed for rice, forestation, human interactions, etc, probably going to be the cost of doing business there.

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For what news is worth it is interesting to read and hear about JPM as the big silver short buying copper. It was interesting in that from what I heard if your buying up copper mining your buying into silver since big copper projects produce silver as a byproduct.

 

Chime in so I can get educated.

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For what news is worth it is interesting to read and hear about JPM as the big silver short buying copper. It was interesting in that from what I heard if your buying up copper mining your buying into silver since big copper projects produce silver as a byproduct.

 

Chime in so I can get educated.

 

It works both ways as it depends on the deposit having a majority of what mineral(s)? The company is going to note the most profitable mineral and use all other recoverable minerals as an offset or credit towards mining the most abundant reserve. ex. HL figures it costs them nothing to mine silver when they include selling all other of their mined minerals and putting the money towards the actual costs of mining their silver.

 

And yes, most all of the time a deposit yields more than just one recoverable metal. If it's a copper project, silver and gold are coming out of the ground along with the copper just in lesser amounts.ex With FCX copper is their main money maker but they have "As of December 31, 2009, its consolidated recoverable proven and probable reserves totaled 104.2 billion pounds of copper, 37.2 million ounces of gold, 2.59 billion pounds of molybdenum, 270.4 million ounces of silver, and 0.78 billion pounds of cobalt." All the big miners report multiple mineral reserves.

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I have OGC.TO in my core holdings

Sold the trading part months ago

They have been "consolidating" for 4 months now and

lost 50% of the gains since december 2009

At one time they had 150% gains versus dec 2009

Technically they may go all the way back to the

dec 2009 price .

My average cost is close to zero after selling the

trading part

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It works both ways as it depends on the deposit having a majority of what mineral(s)? The company is going to note the most profitable mineral and use all other recoverable minerals as an offset or credit towards mining the most abundant reserve. ex. HL figures it costs them nothing to mine silver when they include selling all other of their mined minerals and putting the money towards the actual costs of mining their silver.

 

And yes, most all of the time a deposit yields more than just one recoverable metal. If it's a copper project, silver and gold are coming out of the ground along with the copper just in lesser amounts.ex With FCX copper is their main money maker but they have "As of December 31, 2009, its consolidated recoverable proven and probable reserves totaled 104.2 billion pounds of copper, 37.2 million ounces of gold, 2.59 billion pounds of molybdenum, 270.4 million ounces of silver, and 0.78 billion pounds of cobalt." All the big miners report multiple mineral reserves.

 

Thanks Whadda, your a scholar and a gentleman besides being a professor.

 

If there is no news on NAK, but somebody appears to buying up the shares.

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i became aware of alf fields some years back and then he vanished from the public eye

then yesterday he posted this on sinclairs site

http://jsmineset.com/2011/01/18/a-note-from-alf-fields/

 

the #s i hear bandied about call for a larger correction then 08 which was 353dollars. i am using weakness to add to my position. as my work also shows that we make new highs soon

i cant remember who it was that mentioned cepkf , i sold it yesterday-thank you

dharma

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i became aware of alf fields some years back and then he vanished from the public eye

then yesterday he posted this on sinclairs site

http://jsmineset.com/2011/01/18/a-note-from-alf-fields/

 

the #s i hear bandied about call for a larger correction then 08 which was 353dollars. i am using weakness to add to my position. as my work also shows that we make new highs soon

i cant remember who it was that mentioned cepkf , i sold it yesterday-thank you

dharma

 

I think that was me dharma. I've been helped much by your posts, so I'm glad to have been of service.

 

I sold 40% of my CEPKF a few months ago for almost a double and continue to hold the balance. It's pretty deep in the money now but still illiquid, even more illiquid than the underlying stock, which is unusually illiquid. I take it it's this way because it's so tightly held with relatively few shares out. I have a much larger position in the underlying.

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I think that was me dharma. I've been helped much by your posts, so I'm glad to have been of service.

 

I sold 40% of my CEPKF a few months ago for almost a double and continue to hold the balance. It's pretty deep in the money now but still illiquid, even more illiquid than the underlying stock, which is unusually illiquid. I take it it's this way because it's so tightly held with relatively few shares out. I have a much larger position in the underlying.

thanks skid

good to see ya

 

i was looking @a weekly chart of nem , which has an inverse h&s pattern. the lows this week came back and back kissed the neckline.its not unusual to go 2-3 % below the neckline. and on a daily there are divergences.

HGNSI declined again yesterday by 6.7 points to 26.9% lowest level since august 6th gold [email protected]

gdxj is the only miner index , and it has taken over leadership that had been Dover Sole w/daily rsi divergences

dharma

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