I believe a seminal shift in investor sentiment is upon us, regarding the prodigious precious metals. You all know how I feel about gold, categorizing its owners as miscreant tenants of barbarism. Right now, however, I am long the barbarian. As a matter of fact, I am the barbarian. Would you care to see my hordes?
I cobbled together funds from three underperforming positions and crafted a decent sized one with CDE. It was a rather bold move, considering how overbought gold and silver both are. However, over a longer term time frame, these stocks are inexpensive. Imagine buying solar stocks at the beginning of its mammoth turn in 2011, like I did. Now imagine if you actually held those stocks and dream of the money you could’ve made.
Remember the SALT conference? Do you recall how bearish our fellow industry professionals were? These clowns are dying to get pessimistic. For them, positioning long gold is a proxy for hating on the market, without having to take on shorts. We all know who buys gold stocks: Tea Party people, anarchists, old men and sophisticated money managers who live in a world of phantasm.
This move in the miners seems legit. Volume is robust and there are numerous excuses to be long, even at extended levels.
I like CDE to $10.
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