Loading ...Buy and Hold Gold Stocks ?
I think new people to this sector ( and old Pros too) are getting a lesson in how difficult and dangerous this investing philosophy is in this Sector.
Personally I cannot just sit on these things no matter how promising they look.
There are always Company Specific Problems like we see with Alamos Today and of course just the unpredictability of these “corrections” to deal with.
For me…I learned long ago …Gotta Follow the Charts and trade them !
It’s easy to proclaim you are just accumulating on dips and in it for the long haul
You may be ‘/ probably are…right…but watching Portfolio gains disintegrate is psychologically damaging .
Good luck.
It is a horrible sector. I have devoted far too much of my life to it. I happen to have done ok with it. It is always hard to distinguish luck from skill. I do know that with each year I find come across new ways of being stupid or incompetent (fortunately not always by personal experience, but all too often).
There are so many different things to know.
There are huge pitfalls in relying on indexes or ETFs, in not owning individual stocks. Seeing how stocks trade, looking at individual charts tells you a lot you can’t get out of indexes. Yet if you own any you should own many of them–and good ones–in order not to get devastated by unexpected problems in 1 or 2 and for your portfolio to do well in a downturn when success in 1 or 2 will keep you going. But it takes way too much research time and you never know enough. There’s way too much paperwork. Taxes can be an ordeal.
The sector as a whole is wildly volatile. You do get some protection holding a portfolio of the best stocks (whether seniors or explorecos or whatever). You always have to worry that if you are too successful there will be some sort of special tax aimed at you. There are any number of potential worries. There are at least as many crooks as in many other sectors. There is an incredible amount of scamming and naivety. After decades I am scared at how easily I can be taken in by the enthusiasm, including faked enthusiasm, which will manifest itself in charts as breakouts and whatever.
This particular little epoch is particularly unpleasant at least for me. As you indicate, I don’t really know what to do, and my actions are largely dictated by irrational constraints. My accountant has dictated massive sales of broad categories of stocks, so I’ve sold a lot over the past 2 months, and felt somewhat ok since some were stinkers and others had gone too high too fast. I plan to dump a lot more before the end of the year. I bought two explorer-developers just in the past 24 hours, possibly just for the very short-term and have my eyes out for others to buy, perhaps if tax-loss selling gets too extreme.
It’s not so bad when the market is quiet, as it was much of 2018. Then you can look calmly at individual companies. Right now you don’t know whether it’s going to go up a lot soon or down a fair amount soon, or do neither or both.
In a calm market you can identify good companies and buy them. Then you can often hold on to them for quite a long time, often years, just monitoring them somewhat lightly.
A very rare, candid and honest review Karl. Been there, done that so much myself. I did get out with some decent profits this time though. Not at the top, of course…
You’ve got to be like a Honey Badger to trade mining stocks
https://www.youtube.com/watch?v=4r7wHMg5Yjg
It always has been the rule buy weakness and sell strength that rules gold stocks. This is the ONLY way to make money in metals. Regarding royalty stocks, these were trading at very expensive levels vs gold and went up too fast in a short period of time. Leverage in royalty companies is low, if gold rises 10%, royalty plays should go up by 20%, not 40% or more. So correction is normal.
It sounds so simple Alex…BUY weakness…but where ?
Here ? In this sector weakness can be surprisingly WEAK