I agree with those that say that we should not read much into this
Here is a link to the article where he announces his investment in GWG and the reasons for it...
From this article you can see that Jack is not a trader (GWG was his first purchase in 41 years), his position was pretty small (25k) compared to the holdings of other members in this board, his purchase price was only .175 which will put him in-the-money even at current price and the most important thing are the reasons he gave for the investement (which are even more true today than 3 years ago).
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Yesterday I bought the first shares of a publicly listed company that I have bought in 41 years-yes, you heard me correctly, 41 years. I bought 25,000 shares of Canada's Great Western Minerals Group at (USD$) 0.175. Why did I do that?
1. I still think, as I did last November at the Hard Assets Conference in San Francisco, where i first said this, that Great Western will be the first non-Chinese producer of significant commercial quantities of the heavy rare earths, dysprosium and terbium. I also think that this will make GW a target for acquisition by Molycorp, Lynas, and all of the others trying to put together a balanced output of rare earth elements. GW is still the ONLY REE junior that has any more than one of the multiple of supply chain requirements to be a mine to magnet alloy (market) supplier. In fact it is the adoption of this same strategy by Molycorp that gives me hope that Molycorp will be successful in restoring America's self sufficiency in the REE "Business." Last year Molycorp tried very hard to buy GW's Less Common Metals, Ltd, wholly owned subsidiary, so that it, Molycorp, could progress on a mine to magnet strategy now detailed in its SEC filing. The mistake that Molycorp made was in not going after the whole of the GW "Business" including its, GW's, ore bodies in Canada and South Africa (and the USA for that matter). I doubt that a well financed Molycorp will repeat that error, and I suspect it will be back at the front lines of such an acquisition shortly after obtaining the proceeds of the IPO>
2. A rising tide lifts all boats. China has begun rationalizing its rare earth industry and has ordered a remediation program to resolve that industry's environmental problems. Both tasks will require huge amounts of capital. China therefore must force REE prices to rise to increase the REE mining industry's revenues. This will be first accomplished by shutting down rogue operations within China that have traditionally kept prices low by fierce internal competition. Then, or now, inventories will be built up to maintain a buffer for China's domestic and preferred foreign customers for this material. One man's "hoarding" is another man's "inventory building," but at the moment increased prices and the need for revenues are trumping all other business factors. This is perfect timing for the Molycorp IPO which one of the newsletter writers above has called for July 28.