Loading ...More Of The Same?
The choppy action in the gold and silver markets looks like more of the same. Bulls can take solice in that everytime the metals look like they are going into a swoon they reverse on a dime and spike(almost the reverse of what we got use to over the years) Bears can look at the fact that despite today’s impressive reversal in the metals, the mining stocks continue to languish.
“despite today’s impressive reversal in the metals, the mining stocks continue to languish.” what is your opinion as to why that is happening?
The next leg of the bull market isn’t yet ready to take place. Maybe waiting for a catalyst like tomorrow’s FED speech by Powell? Despite the conundrum my strategy is this. Since all the rocks that I like are basically at the buy zones that the charts showed me where I want to buy, I have completed doing so. On the other hand when it comes to putting back the metal proxies and actual metal, I am still waiting to see if I get the final drop to my previously discussed targets. My core positions never changed but I am locked and loaded with the rocks and ready to finish my buying as early as tomorrow if we get a drop.
Sound strategy Chartsmaster
I am holding the rocks thru all corrections
They lack liquidity and selling gives you bad fills if you sell at market
Then you get a bad fill upon rebuying often
Hold the Rocks and trade the Large caps and metal Proxies…thats how I am playing for now.
Absolutely agree.
https://www.youtube.com/watch?v=G6EZFA6iHXo
Interesting take on the COT…
Not worried about bullion in the slightest. While my bullion position will allow me to survive, I am probably not going to be able to make life changing profits off of my bullion position. I am depending on the miners for that and right now, they still haven’t proven they can outperform metal for any sustained duration and still haven’t even broken above their 2016 peak vs metal. Until they actually make a higher high, the jury is still out. We will only know in hindsight.
Must have some pretty bad miners. After reading your comment I went to a five year chart and put in a bunch of miners, all of which are much higher than their 2016 highs.
I’m talking about the ratio of miners to the metal, e.g., $HUI:$gold; $XAU:$Gold; GDX:GLD; or SIL:SLV.
$XAU:$gold has been in bear market since the mid 1990s and it still hasn’t taken out its 2016 high. If you adjust for risk, physical metal has absolutely destroyed miners over that time.
Agree metal has outperformed. That is why I use rocks and CEF.
What’s the point in buying miners with all of their associated risks, when the metal gives you a substantially better return over time?
There is none.
Now, that could change, but like I said, a very significant first step would be for $xau:$gold to take out its 2016 high.