Mason Res Corp MSSNF

Pyramid Investing

[ThaiDiamond]

"think it's wiser to go for the big companies"

That depends on how you're investing in precious metals in your portfolio.

I use a pyramid concept where at the base I have my biggest investments -- and that's a good place for mid and major tier miners like Yamana and GoldCorp respectively.

YRI got to a high of about $20 dollars last year.  If gold spikes up to say $1,500 to $2,000, it may go way beyond $20/share to say $30 or $40. So given it's been trading in the high $7s to low $9s, you got a potential 4 or 5 bagger...maybe a bit more.

As the pyramid tapers as it goes up, so does my portfolio. This is the place for higher risk stocks, but also the potential of much higher returns. So speculative investments -- in lessor amounts than the pyramid's base -- are placed here.

MNR, should infill drilling (and new discoveries) push up the deposit north of 3 million ounces, and in a scenario of much higher gold price, does have the potential to explode. And well beyond 50 cents.

Factor in the unique aspect of the current credit crisis -- with a ton of money still on the sidelines -- and as confidence returns to the market we may see more fund eventually reach down to the junior level. Particularly juniors with a proven resource, cash, and a partner that buys its way in.

All this is a long winded way of saying is that both investments are valid -- majors and juniors -- in proper proportion within a diversified portfolio.

We're not picking wives here. You're allowed to kiss more than one girl.