Keep Your Eye On The Ball
As technicians, we often use comparisons and divergences to help determine what may be going on under the surface of the stock, commodity or index that we are looking at. In the case of the current behavior and future outlook for gold and silver I would caution one to “keep your eye on the ball”, the actual price action of gold and silver. Don’t get distracted by noise from various currencies, the yen, the US dollar etc. Don’t look for all the text book price formations that may or may not actually be there. Most importantly, don’t put stock in derivatives, especially the totally fraudulent GLD, in determining how to position oneself in gold and silver. I am fine in staying objective to the possibility that gold and silver aren’t about to explode higher soon. I will follow what they and their charts say and won’t be distracted by non existent patterns. It is quite possible that as investors in the mining companies we could once again be disappointed in how they perform vs. the actual metals. That is why my two core holdings are CEF and PSLV. I am also playing a number of rocks and see no reason yet to abandon any of them. Keep your eye on the ball and don’t get shaken off the bull until it is actually over.
What is your strategy of your portfolio % break down, CEF, PSLV percentages vs. your mining picks?
Not counting a small amount to speculate on non precious metal stocks, the bulk breaks down as follows: 50% CEF, 25% PSLV, 25% for miners, almost all rocks.
Thanks! What are rocks? The micro caps miners/penny stocks?