At my last posting in late Nov. 2010, I had realized a 197% gain in my portfolio since Feb. 5th, 2009 and as of today this stands at 156%. The last few months have been tough especially around mid-Feb. when I was scrambling to cover margin calls (my portfolio gain at that point was south of 100%). As the gold mining stocks declined sharply since the end of November, I moved out of cash and into margin... but alas I moved too soon and was caught in a dreadful margin squeeze. I had to dump another $80K of equity into my account because many of my penny-warrant holdings dropped below $2/share thereby making them unmarginable.
Now the investing public doesn't know what to make of gold assets. On the one hand they think bullion is too pricey at $1,430/oz but at the same time investors have to be impressed by gold's resilience. Try as they might, the pros could not hammer gold bullion down by more than $125/oz. That is a correction of less than 8%! They were able to hammer gold mining stocks however and they all but created a panic with several of my holdings. Yes folks, even the SPDR investors were dumping bullion with a reported decrease of over 76 tonnes from late Nov. 2010 to today in that one gold trust alone. That's a lot of bread with 32,150 troy Oz per tonne, we are only talking about $3.3 billion flowing out of SPDR!
One of these days SPDR investors will decide that they acted prematurely and heaven help them at that point. I'm sticking to my $2,000 oz prediction and I'm not doing much selling until we get there.
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