After yesterday discussion about how to position in gold stocks en how to play and when to take profits I wanted to re post this link and share some of my own experiences

a must listen, from 14 min mark, lesson 7 to lesson 9

My own experience, from trading and investing in gold stocks the last 2 years (I am doing this since 2005 however) is stick to the majors (and some midcaps) and royalty companies only.

Recently I had several holdings in some mid cap players, but these are very volatile and sometimes, you have to sell at loss and know when! GSS published very bad results recently, so I sold my entire position some weeks ago. Same about KNT, a very good company in PNG, but due to additional country risk, I sold my position.

My preference for a portfolio is big caps + some developers and midcap names that are present in Canada/Nevada/Australia and some parts in South America (Peru/Chile/Mexico).

Additionally I only invest in companies, where investors are treated the same why as management and insiders. If I see Barrick CEO buying in the market for several M$, then I feel comfortable holding these shares. The same with some explorers I have a big position in that do financing’s without warrants to avoid dilution.

Some companies give away warrants like cookies in a candy store to stay alive, I believe this only proves how desperate these companies are or how bad the deposit is.

I just participated in a financing of a junior company, without any warrant. I have no problem with that, and even prefer that then upside will be higher due to less dilution and all shareholders are treated the same way.

But remember as good as a story could be it is important to buy low or during the early part of a bull market. I you buy after a 6 month rally like in 2016, it is difficult to make money.

And very important, never forget to take profits. I recently sold (2 weeks ago) 30% of my position in an Australian developer (GOR) after it went up 3 times the last 2-3 years. Yesterday it corrected with 17%, so I am very happy I took out at least my original investment and bought other gold stocks with it.

And last, but not least, do not try to time markets and only invest in companies you want to hold, even during a correction. Timing is VERY difficult, I know investors that completely missed the recent bull run, and  I noticed several newsletters recommending to take partial profits last weak. It never hurts to take some money off the table, but remember in a bull market surprises always come from the upside!

As far as some people having no access to ETF’s like GDX due to European regulation I suggest to buy funds line ASA (, a fund managed by Merk Investments and trading at discount of 16%!

Performance of ASA has been 36% since end of May, in line with GDX performance.