Acadian Mining Corporation ADAIF

Blood on the golden streets

[Orwell]

$560 gold is unwanted, but not surprising. Don't be further surprised if it could venture close to $500, but I think there is key resistance in the mid $500s. And at some point in this intermediate term correction, there will be a good rally/bounce. Look at gold during the course of its recent bull run, it is not uncommon to retrace 50% of the difference between its highs and lows on the way up. Unfortunately gold went up so far and fast recently that 50% differential is large. Just don't forget--gold is money, so I think if you buy gold anywhere in the $500s during the next 6 months, you should be rewarded during the next 1-3 years. When things die down, I would mostly recommend a basket of stocks, e.g. XGD on Toronto. But there are a FEW individual juniors I like - CMM, EET, ADA. Not much else though, maybe NEM as a senior, but I'd rather own juniors, and just buy the bullion, e.g. GLD on New York. On another note, I think Cameco (CCO) will continue to be attractive. Oil may fall, but uranium should hang in there, and CCO also produces gold. Hang in there with ADA, I'm certainly adding more at these levels. My target for it is $1.50 O.