PRECIOUS METALS STRATEGY REVIEW

Current Holdings:
Cash $104K
New Gold Warrants 37,500 units ($112K)
Victoria Gold 25,000 shares ($34K)
ECU Silver Warrants 43,000 units ($28K)
Franco Nevada Warrants 3,000 units ($17K)
Petroamerica Oil Corp. Warrants 75,000 units ($14K)
Kinross Gold Warrants D 2,000 units (under $10K)
Rio Novo Gold Warrants 8,000 units
Takara Resources 7,000 shares
TOTAL PORTFOLIO MARKET VALUE (incl. cash)...$330.7K
Percentage Increase Since Inception (Feb 5, 2009): 197%

With spot gold off over 5% from its recent $1,420/oz high, and with $100K cash on hand, What is my strategy now?

I think that the market has only partially factored the QE2, currency, and debt situations so I don't see that the gold game is anywhere near its end. Since we've just come off a 35% rally (since Feb. 1st, 2010) in spot gold and related markets it should surprise no one if we see some consolidation at current prices before we see another big run up. So I plan to simply take advantage of any rotational weakness in the prices of any of my above holdings (also Agnico-Eagle Warrants in my US$ account) to increase my positions. I hope that I have enough patience to do a proper job with this strategy however I expect to be fully invested again by year-end. I plan to move into a broker margin situation should we experience a major correction (over 25%).