David Davis - Credit Suisse - says Gold is going to grow a lot more because of a simple supply deficit.
http://www.miningmx.com/gold_silver/622588.htm
http://www.miningweekly.co.za/min/news/today/?show=90612

Bill, if we are going to talk about junior, speculative miners, we MUST include GLE. It should be at the top of the list. Particularly after Peter Tagliamonte's conference call last week on the Libertad mine in Nicaragua. Talk about creating shareholder value (for those w/ patience...)! I also like NTO, but they are as much copper as they are gold, so may not fit your parameters.

Be well and good heatlh!!

GLD ETF with $10B in assets.

http://ca.us.biz.yahoo.com/bw/070226/20070226005746.html?.v=1

Is this all backed by physical gold??
(Kaimu? :-))

BOSTON--(BUSINESS WIRE)--State Street Global Markets LLC, an affiliate of State Street Global Advisors ("State Street") (NYSE: STT - News), and World Gold Trust Services, LLC, a wholly-owned subsidiary of the World Gold Council, today announced that assets in the streetTRACKS® Gold Trust (NYSE: GLD - News), the issuer of streetTRACKS® Gold Shares, have surpassed $10 billion.

At this point, I've exited a lot of the equity positions that I accumulated over the past few years. I had mostly turn around stocks and emerging market equities that had performed well for the past few years. I've put much my portfolio into gold and gold miners. My question is what happens to gold prices, GLD, and gold miner stock prices if there is a general correction in the market? I've been wondering whether gold and gold miners go down with the rest of the market the whole way, or go down part of the way and then rise, or move in the opposite direction of the market if there is a correction. What's the right strategy in terms of exposure to gold and gold miners if one anticipates a near term correction? Advice on this is appreciated.

Excellent question from aleisen!

What can we expect from gold stocks in a falling market (especially with a collapsing credit bubble)? I have assumed that PM stocks would first collapse with the rest of the market but then recover with the help of bullish commodity prices.

I would appreciate more informed opinion...

To the question of what may happen to gold stocks in a falling market, I believe we must first consider several scenarios as gold stocks would behave differently.

First a mild falling market. If anything, gold stocks will not be be affected much probably going up in price as fundamentals for the sector still looks good.

Second a correction -- lets say 10% for the major indexes. In this scenario, gold stocks would suffer but will outperform the market as a correction of this size does not change the mid to long-term fundamentals. It does not change the profit earnings capability of the individual companies either. So hold on and just wait.

Third scenario a major correction, potentially turning into a bear market. I am in the camp that believes we now need a correction in the price of risky assets. The argument is that risky assets are not paying people for the inherent risk for a variety of reasons and over time as realized losses get to be above expected losses for a period of time, then investors question their loss assumptions and re-price assets. In such scenario, everything gets touched -- so will gold stocks with the aggravation that gold itself will probably sell off as well. For anyone long, I would just recommend to be trigger happy if you see things going south or get flat today.

Pick your scenario and act in accordance to it. If you are a long time believer that gold is/was cheap please do not get in love with your positions.

Good luck to everybody.

I think aleisen has a very important question and I appreciate JP's answer, but could the commander provide some further insight on this one? My portfolio is also now allocated with core gold & silver positions.

Great Basin Gold Ltd (GBN) is in a very good position right now. I think this stock is cheap at current levels.

One hundred percent of the planned 55,000 ft (16,750 m) of underground drilling has now been completed. Drilling has taken place at 100 ft (30 m) spacing to fill in gaps from surface drilling within the Clementine and Gwenivere vein systems. Over the past twelve months since drilling began, Great Basin Gold has announced excellent results from the program. Currently there is a backlog, but the Company anticipates releasing additional results as they become available in the coming weeks.

I called the investors relations people and seems like they are doing very good. I will be investing over $30,000 in this stock over next 2 months.

I think over next two to three years especially in 2009 I am sure this stock would trade in $10-15 range.

Good luck