More great points Dan. Apparently Joe doesn’t understand the concept of trading these mining stocks (and they are all trades), and buying low and selling higher. That’s why he’s missed most of the rallies this year like the good one from Jan-Apr, or the move from early July to early August. There were several nice tradable rallies last year, and the year before, and the year before, the key is to buy when things are oversold and sell when they get overbought on the lessor charts.

People just sitting in these miners for years at a time are going to get banged up, but no rational person buys the highs in August of 2020 and just sits in them down to current levels, so that strawman assumption is way off base. All commodities are cyclical by their very nature, not just Gold and Silver, but Oil, Nat Gas, Palladium, Nickel, Copper, Zinc, Uranium, Lithium, Rare Earths, Graphite, Fertilizers, etc… (many of them had very epic moves the first few months of just this year, not to mention great moves over the last 2-3 years).

Now if one is investing in the extractive mining stocks or energy stocks that correlate within these volatile sectors, then they are even more choppy and have big moves higher then swan dives down lower, then another big move higher, then another big move lower, and so on… As you mentioned, these little mining stocks “are like burning matches.” They go from zero to hero and then typically burn out quickly, so one has to make hay while the sun is shining, and then pick the next trade set up.

If people have held onto these stocks for decades (like some say since the mid 2000s to present) or since the 2011 high or whatever….and didn’t take appropriate risk management measures in their portfolios, or buy after larger corrective moves or near key turns, then that is on them. It isn’t the sector’s fault, but their own poor money management and trading disciplines. Even well run companies with good projects go up 2x, 3x, 5x, 8x, and then follow that up with pullbacks of 20% 30% 50% or 80%. That is the nature of this sector.

People that weren’t buying in late 2015 into early 2016, or the fall of 2018, or the spring of 2019, or the spring of 2020, or even more recently in tax loss selling of 2021 into the Q1 run, or the move down to silly levels we just saw culminating in late June to early July, and were not putting cash to work simply do not get it.

If people were listening to some of these jokers advising to sell in January or February or recently in June or July then they’ve been wrong-footed all along, and don’t understand the basic concept of putting cash to work to buy low, and then trimming back the stocks when they run higher by double-digit or triple-digit percentage moves.

I have been the guy that held on too long for sure! I bought too soon on SCZ this week but am averging down and have confidence in both companies.

https://schrts.co/SgcUGARR

BTW, I traded about one third of my position in Brixton and will gladly buy back in.

Yeah, I really like Santacruz Silver (SCZ) as well, and bought a bunch at much lower prices a few times in years past and actually faded out some of my position on a few of the rallies we’ve had in prior years and have just held onto the core position which was essentially a free trading position.

However, in light of the recent weakness, on the back of what was actually a great quarterly operations report, and in a sluggish low sentiment environment in the mining stocks, I’m considering adding more to my position. I had my finger hovering over the buy button all week, but decided to wait in case silver and the stock broke down even further. I was going to buy some today, but want to see how things go next week.

I did add a little to my growing position in a beat up growth-oriented gold producer Superior Gold (SGI) today. They’ve had a rough few years, but with a new team and new focus, I like their prospects for a turnaround, and to increase production meaningfully by 2023, and again in 2024. They just had a tough operations report for last quarter due to weather and covid personnel issues, but for the balance of the year I expect things to pick up again, and really next year will be their breakout year.

I like to get in early though, when stocks are unloved, and prior bagholders are pissed off, as these are generally the best accumulation points. I did the same thing with Gatos Silver (GATO) this year buying at max pessimism and have tagged two good trades for over 60%, buying it for the bounces when most left in disgust.

Again, why people don’t take advantage of the trade setups when these companies get pummeled down, and then surge higher on a relief rally is beyond me, but even in corrective periods, traders paying attention can still make money.

My problem is I usually will only have 1 or 2 stocks that get into the LT Capital gain category. ST gains have that higher tax charge but I can’t be controlled by the Tax Man. The other issue I have is that most of my stocks have disallowed losses because I don’t wait 30 days to turn them over and buy back. Now sometimes I plan a tax loss but half the time something happens that makes me buy back early. What I have to do also is keep a running list in front of me everyday that has two columns: Do Not Buy and Do Not Sell. A couple of years ago, I got suspended for 90 days for violating the “settlement” rules. I have to resist getting in and out too soon. More FWIW stuff.

Hi Lakedweller2. That is what I do. I have a running list of what I sold on what date, when the 30 day period is up, and when it is appropriate to buy after the wash period. Obviously, if something major happens during that time period, then I may have to trade it and forego the tax loss or recalculate the gain, as it will be disallowed. I find that the majority of the time waiting out the 30 day period is not going to radically change things though, and I often I get back in at a much better price anyway.