Stocks are so cheap relative to bullion. If you have some discipline and a plan you can secure a robust portfolio of stocks. Why speculate on a company that may or may not get a good resource? There are perfectly good JORC resources out there with scoping studies or a pre-feasibility study to help you crunch your numbers. (proven & probable is best, measured is better than indicated, indicated is better than inferred. No feasibility study can be done on an inferred resource) [youtube]http://www.youtube.com/watch?v=hZD_BNSBX_o[/youtube] My example was Phillips River (which didn't turn out great for me but me and Silverlake both thought it was worth buying) Grade over Grande - High grade is better than bulk (usually) 100k ounces at 9grams p/t (starting shallow) is usually more attractive as a takeover than 1,000,000 ounces at 0.9grams p/t Tight over Titan - I don't want a junior stock with 900million shares on issue - that's retarded! less than 500mil is ok, less than 200mill is great, less than 100mill is AWESOME (consider liquidity and support levels) Safe over Saturated - consider the country risk - a large deposit in a country that has greedy novice leadership will saturate it with drool and may demand a chunk from your company. That's why i stay away from Africa and Middle East Build over Blob - build a portfolio - large caps, med caps and some juniors - don't get the triangle round the wrong way! Larger is base, junior is the peak so allocate a percentage Bullion - Physical bullion should form the base of any PM portfolio - 20% is a number to think about. Mine is 45% base in bullion 45% stocks and 10% cash (slightly skewed as ive used the cash to get some more stock) Im not a financial adviser, I am just an individual investor like you guys. This is how I do my stuff, do some research and consider if it is best for you. This is food for thought for newbie and lost people... [youtube]http://www.youtube.com/watch?v=WcaFXytwZlE[/youtube] [youtube]http://www.youtube.com/watch?v=7pbo4ZuZeyg[/youtube]
