Loading ...Gdx vs individual gold stocks
I agree with Fullgold that focusing on individual miners makes the job far more interesting.
Otherwise one is totally lost debating what will happen with gold next or not, as long as we make higher lows in gold I am happy, knowing that sooner or later higher highs will follow.
I have been holding FPC and several other miners in this correction, some are down, others flat and others up strongly, what makes this correction business as usual for me.
This was the chart of FPC 3 weeks ago, It looked like it wanted to break-out, and it did
current chart after Broker upgrade and 1.80 target of BMO:
Another example is Leagold, a new company set up by ex- EDV people, I bought recently at 2.55 level, a level I believe is cheap as all insiders bought at 2.70 level at PP
Of course I had losers too in my portfolio, as I am holding 20+ miners, but on average my return was only slightly down in this downturn, largely outperforming GDX or the popular names like EXK, KDX,… that were all strongly down in this correction.
My strategy has been to avoid the popular names and invest in cheap and or unknown stories, it makes me more money than guessing what gold will do every 2/3 weeks.
Thanks for Sharing Alex33. Well played.
I think Gold Fever is Building. I fell a possible Micro mania like the one in 1994 to 1996
we may be in 1993 right now.
Gold was in the middle of a bear market and wasn’t even rallying..it was flat around $400 when the BreX Mania Period .
began.
100 baggers were common if you bought early. 1000 baggers even.
This is probably the most important thing to understand: could we be in a PM stock bull reagrdless of what gold will do?
These little ones and their charts I find much more interesting than the indexes and their charts. (I have owned a little FPC for about a year myself–felt things were bottoming and it looked good and I wanted even more than the ones Spock was recommending.)
You can get completely wiped out if you put too much in these little ones at the wrong time. You can get fooled by hype even if you’re pretty smart, and it helps to know a lot about the people and something about the geology and the rest of the business. But the charts do talk, often eloquently. If the chart looks good on multiple time frames, then you do further research (certainly scrutinizing the company website) and can’t find anything bad…
You may not be an institution or get insider info or may not get to be involved in private placements. But unlike the institutions you as a little gal or guy get to buy and sell w/o moving the markets. So you can have an advantage, a special niche, if you do it alone — after a lot of learning (often the hard way).
That’s my experience (after having learned a lot the hard as well as easy way). I don’t like mentioning names though because I don’t like the responsibility of misleading other people with my choices.
So, yes. Much more interesting, but takes a lot of responsibility. And the charts are fun.