Wednesday, August 31, 2011

Bullion Baron's Fantasy Portfolio - Update

You can see my original post on the fantasy portfolio here:

Bullion Baron's Fantasy Portfolio - Day 1

Further to the disclaimer that was in that original post, I would just like to point out that the portfolio may come close to being 100% invested at times (currently a little under 50% invested). This portfolio was not setup to reflect the value and weighting of an entire investment portfolio. Depending on your knowledge, capital, age, goals and other factors Gold stocks may only be a small portion of your overall investment plan. In your case 100% invested might only be the equivalent to 5% of your entire capital for example. I do not take any responsibility for your investment decisions, it's a rough market at the moment, do your own research and make sure any decisions to purchase are your own!

Over the last several days I have tweeted some buys during intraday trade, adding the following to the original portfolio:

10,000 MTE at 83c
8,500 CCU at 89.5c
100,000 BSROA at 1.6c (11c strike 30/11/2012 expiry)

The MTE purchase should be no surprise to regular readers following my writeup on it here. I've also written about CCU on multiple occasions. It's likely to be the only pure Silver company I hold in the portfolio for the time being.

BSR (Bassari Resources) is a new one to the blog, this company popped onto my radar the other day (randomly via the ASX precious metals stock announcement feed) when they released the following assay as part of a drilling campaign underway:

7m @ 54.3g/t gold intercept at Makabingui Project

Further reading and I like what I see. 2-3 quarters worth of cash, a new shallow high grade resource which they intend on expanding, further drill results pending (some of which contain VISIBLE GOLD in the drill core), large tenement which is surrounded by other multi-million ounce Gold deposits... I went with the options as there is a reasonable length of time until expiry (15 months) and I think there is easily room for the BSR share price to appreciate to around the 14c level over the short to medium term which would likely provide around a 300% return on the options. Options are high risk, but they can provide some amazing leverage. The position taken for the portfolio is therefor very small and will not be increased.

In the tweet I said I hadn't gone with this trade in my personal account (didn't intend on chasing after thinking I had missed an earlier order), but after inspecting my account later in the day realised the earlier order had gone through, so I'm in at .015 (portfolio purchased at .016).

Here is the portfolio as it stood end of trade today:


I will look at improving the format. Haven't had a lot of spare time the last few days so have just thrown the above together quickly to display where things sit presently.

I am still waiting for the HUI/GDX breakouts to add further positions from here. We could easily see this breakout occur tonight in US trade with Gold holding it's ground and stocks up in the premarket. I suspect when they do breakout (HUI above 610, GDX above 64) it could be the start of a very explosive rally.


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