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Should We Be Preparing For Tax Loss Selling?

Cory
October 3, 2017

Today I chat with Doc about the potential of tax loss selling hitting the precious metals markets in the near term. Throughout this year if you look at a weekly chart of GDX there really has not been much movement. We don’t think this will change significantly through the end of the year but we do have to factor in tax loss selling as something that could weigh on the stocks temporarily.

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Discussion
27 Comments
    Oct 03, 2017 03:49 PM

    Whenever you hold miners, you should be prepared for an absolute reaming. Whenever you think they can’t go any lower, they’ll drop another 30-50% in an instant.

      Oct 03, 2017 03:30 PM

      On the other hand we have NSRPF which is 14 times higher than it was in May.
      A 14-bagger in 5 months is better than a kick in the pants.

        Oct 03, 2017 03:39 PM

        My losses in Primero, Midway Gold, Allied Nevada, Olivut, and Royal Oak Mines fade away compared to my gains in Novo. Hope Novo doesn’t go back down, but I think it’s going a lot higher.

    Oct 03, 2017 03:55 PM

    I got some loser weed stocks to unload to lesson my Bitcoin tax burden.

    Oct 03, 2017 03:00 PM

    Speaking of losers – Vegas Shooter Filmed Himself During Slaughter, May Have Left A Note; Suicide Photo Emerges

    The Vegas shooter set up a camera inside his hotel room to capture his deadly shooting rampage on film, as well as surveillance equipment to alert him as cops closed in on him. A suicide photo of the shooter has also been released. Warning: Graphic Content.

    http://www.zerohedge.com/news/2017-10-03/vegas-shooter-filmed-himself-during-slaughter-suicide-photo-emerges

    cmc
    Oct 03, 2017 03:13 PM

    Hi Doc,

    I’m made a very nice gain over the past couple of months on my Novo stock and wondering what your charts say, particularly if I should sell it and wait for a pull-back to buy it back again, or just hold on. Thanks you, Doc.

    Oct 03, 2017 03:04 PM

    CMC, happy for you.I sold too soon. The stock looks good yet—I would expect you should be okay for some time—it may not go much higher but I don’t believe it’ll fall out of bed anytime soon. It should start to top but it should be a lenghthy process. Just don’t get greedy. I’ve sold some stocks that have run and their back down and I’m buying them again. However, NVO is a different bird and may hang up there for awhile compared to others that have run.

      cmc
      Oct 03, 2017 03:09 PM

      Thanks, Doc. I always appreciate your reliable commentary and input. I have learned through my investment life the hard way that no one ever goes broke taking a profit and so I get jittery about being too greedy at a 50%+ return. I’ll just keep a comfortable sell stop on it then. Please keep the cards and letters coming. I don’t often comment, but I am always listening.

    Oct 04, 2017 04:54 AM

    guys tax loss selling occurs when u have losses. Most gold/silver stocks as well as gold and silver are UP on the year. There will be no tax loss selling this year. Expect the opposite. All the sellers are gone (almost). Up from here.

    Oct 04, 2017 04:53 AM

    US economy is booming. Stocks are at all time highs. Goldman Sachs stock is about to break out to new highs. Commodities are at 50 year lows. The Fed and their bankster cronies have executed a master class and are laughing at the hard money crowd while lining their pockets. They have bought islands, built walls and will soon take away the pitchforks and then tell us to eat cake when this comes crumbling down.

        Oct 04, 2017 04:27 AM

        Do yourself a favor, ignore Rickards. I have yet to see any of his forecasts work out.
        And its been over 10 years. Just saying.

          Oct 04, 2017 04:41 PM

          Dave,
          I would tend to agree with you,,,,,,after 11 or 12 yrs……not sure he is on top of things as much as he would like others to think him to be.

      Oct 04, 2017 04:43 AM

      Commodities are at 50 year lows??? Zinc?copper? Gold even?? 50 year lows ???are you basing it on inflation ???

        Oct 04, 2017 04:11 AM

        The complex. You could cherry pick individual commodities, just like with stocks. I am talking about a trend across an entire asset class.

          Oct 04, 2017 04:12 AM

          Take a look at a longterm CRB chart as an example. It’s less than idead since it is skewed towards oil, but you will get the picture.

            GH
            Oct 04, 2017 04:10 PM

            I like to buy at lows, so I’m pretty psyched about the position of commodities in general.

          Oct 04, 2017 04:25 PM

          Well I guess I’m considered a cherry picker since I only follow the commodities that I invest in…..zinc copper nickel lead cobalt lithium

            Oct 04, 2017 04:44 PM

            +1

            Oct 04, 2017 04:11 PM

            great point Wolfster. I find the overall commodity indexes interesting for the very large macro trend, but feel it is much more prudent to track them separately based on how one invests.

            As you mentioned there are commodities that have outperformed like Zinc, Lead, Copper, Cobalt, Lithium, etc….

            I find the soft commodities and fertilizers to be on a completely different trajectory and some of those are crop specific like Coffee, Sugar, Soybeans, Corn, etc….

            Oil & Nat Gas are weighted far too heavily in most commodity indexes and often will skew the numbers and this has little to do with Tin or Nickel or Iron Ore prices.

            Likewise, there are sectors like Platinum/Palladium/Rhodium that largely have an Industrial Metals component, but also are affected by their semi-precious status with the Gold price. Silver is also mixed bag with Industrial & Precious status, but tracks the general trend of Gold (outperforming to the upside and downside).

            Like you, for investing purposes, I’d rather just look at each commodity on its own, and really each company on its own merit, than to lump all the commodities together.

        Oct 04, 2017 04:52 AM

        The CRB would have to rise more than 500% (more than 6 fold) to get back to its 2001 high versus gold. So commodities are very cheap and I believe that the 2/2016 low was THE low.

        http://stockcharts.com/h-sc/ui?s=%24CRB%3A%24GOLD&p=W&yr=20&mn=9&dy=0&id=p95113561832

          Oct 04, 2017 04:46 PM

          Agreed. Commodities in general have been a buy the last 2 years and I also agree that Jan/Feb 2016 was the Major low in the commodities space (as a general overview).

    Ulf
    Oct 04, 2017 04:22 PM

    It feels like my Mexus Gold is suffering from tax loss selling all year 🙂