Does this drop in the precious metals worry you? Doc says it will be okay
After the drop in gold and silver this morning Doc thinks that the metals are still looking promising for a rally in the next couple months.
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Great commentary from Doc on this editorial and I am in agreement the majority of his points. Cory, Doc, Al, – I also agree that the small producers and mid tiers are positioned the best for when the metal prices improve, and I am also adding to the quality companies when we get these pullbacks.
Good stuff guys!
Very interesting indeed, Doc sees no drop and Bird does.
Birds been pretty good at predicting drops. Docs good too.
How do we place wagers? and how do I hedge my wager?
BB; Bird and Rick could be right in the long time frame. All I’m saying is that the technicals aren’t signalling at this time a significant move down. Based on the technicals at this point in time, the odds are for the month of May seeing a move sideways to down. If that happens, the odds based on technicals are that June could be up. However, if May deteriorates significantly, then the summer months are not going to be positive for gold. Right now the momentum indicators are neutral and that’s a very important indicator at this point in time.
Great point Doc. That is where the guys differ most days. It’s mostly about time frames and the charts we each prefer. I did get part of my gold drop so far today as prices fell below April lows. Silver has not quite followed yet but there is still time on this cycle for it to catch up. Next stop 1150 gold.
Thanks guys, I almost sold out today… at the bottom. 😛
Foolish me for holding through the FOMC!
It may retrace some more but I also see upside from here. Could be wrong, but I’m looking up (although I still see another bottom coming in the Fall time)
Dang, things sure are tough in the gold patch today…and in the rye patch…seems like we’re in the briar patch….
But no matter how tough it gets hopefully Big Al Korelin or no one else here will have to resort to this to make a living…
http://www.usatoday.com/story/money/business/2015/04/30/tallywackers-guy-candy-restaurant/26630341/
Ebolan – I agree that it has been tough in the Gold patch, but I wouldn’t say it has been tough in the Rye Patch.
With the Net Smelter Royalty Rye Patch Gold has been doing all the right things with this incoming revenue 1)funding an intense exploration program, 2) acquiring strategic land positions around their existing key properties 3) moving forward on mine development at Lincoln Hill and 4) now they are buying back shares of their own stock.
How many other Jr Miners accomplished that much over last year or so?
Very few cash-starved Jrs have not done much of anything, as most just got de-listed in the last few months, or they are zombie shells waiting to be delisted. Even many of the good projects are starved of cash to move things forward, so they are just treading water and burning through cash. If they were lucky enough to raise finances in this brutal bear market, then they diluted the snot out of the existing shareholders.
Rye Patch is doing all this good work without diluting their shareholders, so that makes them a diamond in the rough. Eventually the marketplace will take notice and they’ll be re-rated. Regardless, they are buying back up to 5% of their own shares soon, and this will boost the share price into the mid-term, and cause analysts to wonder how they can afford this, and it may draw attention to their Net Smelter Royalty.
I tell ya Shad, everything is tough for me these days.
But you make some good points so I think we will not see you in the briar patch or working at Tallywackers!
Ha! Thanks for the vote of confidence Ebolan.
Good luck to you and may your tough times refine your philosophies, sharpen your axe, crystalize your thinking, magnify your profits, and multiply your prosperity!!
Honust wiseguy, I think Gary made a good point, the next while in particular, your going to need to be an active trader.
My feeling is we get to somewhere near the lows Rick is talking about.
At that point betting on the bull might be very profitable indeed.
Personally, Im waiting for that time now.
My trading skills are far from a match for this market as it is now.
Conventional markets about to get whacked Doc???
I like the thought of that happening. Would welcome it sooner than later.
NO, I don’t
No, I don’t worry, because I understand their game. I will not allow them to intimidate me in any way. All one has to do it examine this country’s financial data, understand the deception of the Fed and banks, as well as watch the
direction of the Eastern world, and he can clearly see it is only a matter of months before the ‘great financial reckoning’ happens…..it will be very painful to many
many Americans in September and the last quarter..
‘simply said’
wyn
Wyn,
I agree 100%. This fall will start the sell off in the conventional stocks, which will crush the main stream ( brainwashed of someone else telling them what to do ) investor.
The banks and brokerages are scams! So is the government!
DITTO
ditto
Agreed Chartster.
Times ahead are not looking that good. Listen to today’s Daily Editorial.
The other day I sent a message to the Bank of Canada proposing a trade. I stated that I would like to buy 500 million Canadian dollars with 5000 ounces of silver in order to stimulate the economy and lower the value of the Canadian dollar. I addressed the message to the governor of the bank. So far there has been no reply.
Steven, thank you for your patriotism. I’m sure the governor of the bank has hastily called a board meeting to consider your request. If he’s impressed with it and asks you whether you have like minded friends, please let us know.
+1 Richard.
I’m game too as I still have a few silver ounces to spare…
🙂
LPG
Ha! No Steven, I think you actually want to loan them 500 million at interest. Just get out your check book and cut them the paper they need. Your bonds are in the mail. There ya go, now you fixed everything.
The majors are buying junior explorers as that is where the value is. Agnico bought Soltoro recently and today just bought 7 million in shares in other Panama based junior explorer moving toward small scale production. Juniors explorers with great potential are best risk reward at this point.
I agree Peter R. I think positioning oneself in peppering of the quality Jr explorers and Jr Miners with good assets, reasonably good balance sheets, and something unique (ie proximity to a working mine or mill, other metal credits, existing royalty streams, JV partners or Majors/Mid-tiers as majority stakeholders, partial funding in place already to advance their projects, or profitable smaller mines) will make them good takeover targets.
There are two scenerios for intermediate producers. They are going to go broke trying to stay afloat or they are going to stagnate and keep themselves afloat without being able to really expand their horizons and grow. A couple will out perform but in my opinion, intermediates are not a smart investment. If you are willing to take on the risk of an intermediate you might as well go into a junior as the up side is an order of magnitude better.
Chinese market is closing for a few days starting from tonight to observe labor day.
Peter R,
there is certainly a lot of validity to your argument, but there are also solid top tier companies like Agnico Eagle (up %7 today), Newmont, Gold Corp, Barrick and Franco Nevada who’s charts pretty positive…they will certainly have big moves later this year. They might not pop as much as a jr but the downside risk is substantially less. If you own the “right juniors” you and Doc are going to make a lot of cash; especially if and when gold spikes up in the fall. Again we are waiting. Good Mid tiers should do well too. I usually feel more comfort having a couple of big producers in my portfolio.
*If* gold spikes up in the fall. At this point I have serious doubts that’s in the cards and still contend the year ends lower than it started for both our favourite precious metals.
Richard is like Tony Montana: “it’s o-kay”
🙂 🙂 🙂
Best to you all gents.
LPG