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Is it Time to Hold Gold?

Since peaking at near $1,800 an ounce in late 2012, gold has given back most of the gains it has put on since 2009. Whilst long-term gold bulls may be keeping their opinions to themselves for the moment, I'd bet my hat they're also planning an entry back into the market when things level out. I'm not going to proffer an opinion on the short-term direction of gold, it's certainly not something I've had too much luck with of late. Although using the one year chart below as guidance it don't take Buffet to figure the current short to mid-term trend. [caption...

Archipelago Resources

We've been bullish on gold since Buffet was, well, pretty old actually, and whilst our spectacularly speculative buy into Norseman Gold (123,211 shares at 3.26 pence) hasn't exactly paid off - Norseman is down, but not yet out - we still have faith in the sector, as gold continues its holding pattern in the $1,600 to $1,800 an ounce band. Archipelago Resources (AR..L) is a far less speculative investment prospect than Norseman. Based out of Singapore, Archipelago is a growing mid-cap gold producer. Their key asset is the Toka Tindung Gold Mine, located in North Sulawesi, Indonesia, which currently has a nine-year mine life...

Norseman Gold Update

Following on from Friday's announcement that Kevin Maloney - Chairman of the Tulla Resources Group of companies - has now fronted up as Norseman Gold's Executive Chairman to the Board, Norseman has announced details of an A$20 million private placement, including the conversion of A$8 million of debt to equity. It's been a turbulent week on the Norseman share price front with shares trading in a wide band between highs of 3.6 pence and lows of 2.65 pence (ouch) - where it stands at the time of writing. A change of Chairman and a placement announcement will do that to a share,...

Norseman Gold Results

Reassurance that Norseman Gold is getting operations back on track came in the form of their third quarter results released Tuesday 1st May 2012. We wrote about Norseman a couple of weeks ago, having taken up 41,768 shares at 3.92 pence in late March (Norseman shares have changed hands at well over 60 pence within the past 18 months). It was a very speculative buy at best and one based entirely on Norseman's intention to conduct a "complete review of operations". Norseman's problem has never been lack of gold - they own Australia's longest continuously running gold mining operation, which has produced...

Norseman Gold

So we've been trawling the depths of AIM for months now adding distressed companies to a dossier of potential turnarounds. It's a bulging bundle, but I am an optimist by nature. Our latest investment, Norseman Gold - like many companies we've bought into over the years - has certainly seen better days (we added 41,768 shares of Norseman to our portfolio at 3.92 pence a share on 20th March 2012). When looking to add a holding to our portfolio, better days usually equates to higher prices so provided a few criterion are met, I'm happy to trade recent bad performance for...