I've Done It Again!

It seems as though each time I buy a stock, it immediately goes down in price. However, most often it has recovered before very long. Yesterday, I bought DROOY at $1.78 which was a low for a couple of weeks. Today, it has traded as low as $1.66. It seems that the drop is due to some uncertainty over the new restructuring which is due to be completed by April 1st. The restructuring should give DRDGold some cash and a more streamlined operation, so I believe it is still a good mining company which will continue to react to the price of gold.

While gold has been above $560 for over 24 hours, the mining stocks have been a little slow to catch up, but are beginning to shows signs of more rapid increase in price. This is normal since many people will not climb on board until the last minute, if ever. That is, most will wait until gold has very obviously become a bull market. However, gold set a new record of $571.20 at 7:24 NY time this morning and a 24-hour low of $563.60 early this morning at 12:53 NY time. Note: Silver Hi $9.91 and Lo $9.70 for the same period. Gold is now at $569.30. Wow, what does it take to bring the masses on board? Do you think they are waiting for $600 gold? Well, it should be here soon! Then what will they use as an excuse for not climbing on board.

The increase in prices of the precious metals has been against all currencies. Thus, the prices are not so overly tied to the dollar. This change has taken place in the last two to three months. This is further indication that more is to come. Of course, we must expect some drop from time to time, but the trend is higher prices for precious metals and other natural resources.

By the way, I am very likely to buy more DROOY at the present level. Depending upon your portfolio, it could be wise for you. But as always, BUYER BEWARE. Make your own decisions.

Crystal Balls just cannot accurately forecast the future. The future is in the hands of a Sovereign God who loves and cares for His people.

Best to each, Doug