Excerpt from: (8/28/09):

..."TGR: Can you summarize your thoughts about Bravo, which you featured in your newsletter a week or so ago? RW: The company is run by a top-notch smart operator, number one. But, number two, for some reason or other, the stock is very tradable. If you get into a gold rally, Bravo seems to have a trading impetus that goes beyond a lot of the other juniors. Five good juniors may go up a quarter, but then Bravo will rise 50 or 60 cents. They've had some really good rallies, and there's good money to be made in that stock. No question about it....

TGR: Another example? RW: One of the ones we like is Timmins Gold. That's run by one of the smartest operators I've ever seen. He took an old mine, built it back up, and found secondary and third choice sites that they're expanding into. They rebuilt the whole flagship property for immediate mining operations. That is a junior that's going to turn into a bigger operator. They don't need a partner; they don't need money. They don't need anything from anybody. They're going to pour gold this year. That's going to be a good one, one of the really top-notch companies in the junior field that we think can become an intermediate or larger.

TGR: As far as timing is concerned, what would you suggest if an investor isn't holding these juniors you like now? RW: If someone came to me with a lot of cash, I would recommend sitting tight for a little while and wait until after September and maybe a few weeks more, then look to buy in and get onto the best part of the forthcoming rally. But historically, the last time this happened, 25 or 30 years ago, if somebody threw darts and picked 20 juniors, as the story goes, they made a 395% gain. Some were complete losers, some made a little bit, and a handful made a bunch—anywhere from 1,000% to 2,000%.

Some people keep screaming diversification and recommend buying several companies. I think it's better to have a small nest and watch the nest. Most of us know who the top two, three or four seniors are. With the juniors, of course, everybody has an opinion, but I've gone through a sifting period for the last five years and think I've got my selection pretty much weeded out.

TGR: Any parting words, Roger? RW: One more point I might make. I think 80% of this whole rally in precious metals is ahead of us. It could come this winter, it could be a year from this winter, but we're getting closer and it's going to be very interesting. Everything we have done since 2001 is just opening the door. We haven't seen anything yet."

Disclosure: Long TMM,BVG, OSK"http://www.theaureport.com/pub/na/2972

safeharbour