GREY:GRFJF - Post by User
Comment by
Orwellon Aug 16, 2008 3:19pm
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Post# 15389816
RE: wgi
RE: wgiSome people would have said earlier that the gold hedge was a bad thing.
Of course, now it looks good.
In fact, if I were a producer, I would have been hedging like crazy with gold near $1000.
Meanwhile most producers were dramatically reducing their hedge book.
WGI is a low grade producer. As such, it needs a high price of gold.
With this leverage, WGI is a great investment as it benefits far greater to gold price increases moreso than a low cost producer.
WGI is just falling right now with the market and the bullion.
But if bullion stabilizes, then WGI remains a bigger bargain than ABX, G, ELD, AEM, etc.
Last quarters earnings report and commentary was great.
WGI is trading as if gold were below $700.
WGI is worth at least $3 at $750 gold.
About 8% of my portfolio now is in WGI, and about 2% is in some other penny stock juniors.
Which makes about 10% of my portfolio in golds, and WGI my biggest holding of any stock in any sector.
Buy low, and sell high my friends!
O.