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Creating value through Exploration and Development in the Sierra Madre of Mexico

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Message: To bull

Re: To bull The PAC-Man Theory, Alive and Well

in response to by
posted on May 01, 2008 06:23AM
Dig, at this time, I'd recommend the larger exchange, the AMEX. That's where KBX trades. Ultimately, it doesn't make much difference where you buy, however, at these prices. It's like asking whether you should pay $150 or $155 for a new Mercedes. If it's offered to you at either price, take it. Then sell it because the maintenance bills will kill you. Better to own a Honda, but that's another story. There is constant arbitrage going on between the two exchanges to keep the prices pretty close. That's not to say, you couldn't find opportunities if you watched constantly, but there are other things going on in life too. How much time do you want to spend looking for a deal that could net you a few hundred bucks? Just buy. Anything in this area is a good deal. You will see. Gold will continue to go up and Kimber with it. Also, for your second question. I believe the Pac-Man theory as espoused by Jim Puplava and Eric King is alive and well. Jim talks about it on the 3/29/08 show during art of the Big Picture if you want to listen. Any company to survive and grow has to have an R and D department. For the miners, exploration is that department. During the lean years, they had to neglect those departments. They laid people off, but they still needed them. They just couldn't see how to pay them back then. So these guys just went out and started their own companies. Eric King is absolutely right, eventually as the gold bull market goes on, these bigger companies, the producers are going to have to start "getting those ounces" to put on their balance sheets, and I believe that they are going to do that by taking out juniors that when the history of these events is reviewed will be seen as having acted as surrogate R and D departments for all these companies for the past several decades. Bull
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