Goldtent TA Paradise

Gold Royalty WPM

1. silverboom says:

   January 1, 2020 - 10:55 am at 10:55 am

   Finger hovering over the “buy” button…

2. Karl says:

   January 1, 2020 - 2:08 pm at 2:08 pm

   Thank you for putting in positive light something I already own to a significant degree. I am therefore biased.

   I bought using other TA criteria, and I would use multiple time frames before buying, not just this chart. Here’s how I’d look at things using this chart, and then what I know about WPM:

   You’re not supposed to consider a pattern to be a pattern until it’s completed. However I’d wonder whether it’s a more than 50% completed cup-and-handle. Perhaps we’re in a period of slight overexcitement. The right side of the cup will completely form as things get overbought. Then it will back off to form a handle. Then would be an absolute gift of a time to pounce. However such a time may not come. These bowls without handles are not necessarily bad things to buy IMO, but you have to be patient if after the right side of the cup finishes forming then a handle forms, perhaps taking you down to a lower price. I never learned how to use Slow Stochastic and never bothered looking up its proper use, but this pattern does not quite fit my optimal buy pattern and in theory perhaps means overbought (but I distrust relying to much on the concept of “overbought” in a potential pervasive up market). I do like that OBV shown here as a good strong confirming sign.

   As for fundamentals I like the royalty model, especially when many companies need financing badly. WPM has several advantages for me personally. I personally like that it has more of a silver kick to it than some others, still. It also has a Pd kick from Stillwater’s properties. DCambone at Kitco did an interview with RSmallwood of WPM several months ago that I personally liked where he spoke pretty convincingly of making it a point of trying to make sure that the locals get back a good amount where ever WPM invests. If so, really good. Another thing, important to me, has to do with US tax laws. I am concerned about the complex PFIC (passive foreign investment company) laws (this is esoteric stuff possibly for US persons only). I sold a ton (for me) of OR and SAND because I was concerned that they would not or could not declare themselves not to be PFICs. I have been having to replace them. For reasons I won’t go into (it would be conjecture only on my part) WPM like FNV declared itself not to be a PFIC and I believe this contention safe from challenge. Therefore I already have been putting the proceeds from OR, SAND, and various clearcut PFICs into clearcut non-PFICs, and WPM like FNV seemed to be a logical replacement for OR and SAND, even if arguably pricier than those two. So I already bought.