That’s “Loin” not “Lion!”
______________________
We’re a little bit over a year into my tenure here, and we’ve probably had three or four “one of those days” days since I started.
Today was one for sure.
This is life in the PM bull, friends, and we should be used to it by now. I expect we are not fully shaken out, although that over 10% move in the $XAU index today might have scared some people off for the next decade or so.
That said, opportunities abound. [[EXK]] was even up by the end of the day, and Silver Wheaton Corp. (USA) [[SLW]] filled two large gaps from the prior month’s work. In hindsight, I likely should have taken the opportunity last week to sell some calls, as I’ve done in the past, but frankly, I was just too busy. That’s why I choose to play long term secular bulls like the gold and silver markets, however, and that strategy has served me well.
So buck up Cowboy, and get ready for some more bull-riding, pleasant and not so much. The good news is those with some dry powder can still grab some great names, perhaps as early as tomorrow morning. I’ve mentioned Allied Nevada Gold Corp. [[ANV]] before (I also like Eldorado Gold Corporation (USA) [[EGO]] here), and you will remember this weekly chart from a couple of days back:
Note we’ve touched that trend line today, as I’d predicted. We may do so again tomorrow, but that mid $17’s area remains a primo area to pick up some nuggets.
On the silver side, besides the two I’d mentioned above, I think [[PAAS]] is still one of your better bets, and riding that weekly trendline like a refusnik on the potato line.
Feel free to stop by here, or The PPT to discuss stocks and trends. I’m here for you during the roller coaster times.
______________________
If you enjoy the content at iBankCoin, please follow us on Twitter
Hi Jake,
I think you’ve answered this before (apologies in advance), but what’s your preferred source for silver bullion? I’m only looking at picking up maybe $5k worth.
Many thanks!!
For that little, I’d try to buy local if you can find a reputable place. Lear and Merritt are pretty decent online, nationwide guys, though.
_______
Thanks!
So buck up Cowboy(girl), and get ready for some more bull-riding………… this is the truth
Thanks Jake. I do have physical g and s and a bit of GLD. Am mostly in cash in my accounts and would like to get back into more PMs- but would greatly appreciate your thoughts re questions below. (I have been following your blog since you started and have made some good coin off some of your picks- got out several months ago when they seemed too volatile- but am ok with the volatility now that I am far more familiar with how the PMs trade.)
If I was to build up to a minimum of 10% of my portfolio in PMs I would look to pick up CEF (though I can’t tell from their May 18 press release if you can still buy in?), PAAS (which you and Fleck both recommend), ANV, EGO and SLW.
Question 1- I think from your perspective that a strategy (that makes sense) would be to buy and hold these “forever” ie for many years given the scenarios on the eventual devaluation of the dollar. As opposed to using them as trading vehicles for swing trades. Is that right?
Question 2- Is it an ok approach to pick a “top five” like this for PM holdings– or would it be a better approach to get a bigger basket? I know you guys can’t give advice,, I’m just struggling with trying to ask the questions in a non-advice seeking way lol.
Question 3- What are your current thoughts on how much of a long term portfolio should be in the PMs for the years that are coming?
I know you’ve no doubt gone over the above like a gazillion times– but I’m only finally at a place where I can “hear and act” on making more significant PM investments (as I finally have a much better understanding of the risks related to the PMs, how they trade on market dips, the whole inflation/deflation debate, miners vs etfs etc.)
thank you
Forever is a long time, but I would want to hold through the end of this secular bull, which could be a couple more years, depending on what the blowoff looks like.
I’ll try to answer the rest after my meeting.
______
Lindsay,
Regarding CEF: CEF is a closed end fund so the number of shares at any time is fixed unlike GLD and SLV which continuously issue shares. Periodically CEF issues more shares (a few times a year) and with the proceeds they buy more metal. As a result CEF generally trades at a premium to the NAV (though there is nothing preventing it trading at a discount some day). You definitely can still buy it. The premium was over 13% recently but is now down to 6% as of yesterday’s close.
Thank you so much Sikander! (I had CEF in 2008 at low ten bucks lol. Ah, the joys of learning.)
Jake, hope that meeting’s going to end soon. We need to hear your voice ovah hea! Aded some RGLD. Better yet, lend me your hand so I can hold on tightly:)
I assure you the world is not ending, my friend.
(It just seems that way.)
See my message below on what I’m doing.
_______
Lindsey —
#2 — I am a big fan of diversification, but I do think you will find, if you hold these long enough, that there are stars you will want to hold more of. I think I’ve been clear on my favorites.
That said, if you don’t feel you’ve enough to diversify properly, then I would definitley use GDX, GDXJ and SIL as “aggregators.”
#3 –I can only tell you what I’m doing, which is more than 50% all in. Again, this is the only secular bull around right now.
_______
Thank you so much for being here for us. My homework this week will include dedicating time to review your previous blogs to get my strategy reconsidered and identify position size and picks. I am really focusing this last couple of weeks on where the money flows after each major drop/panic in the mkts– and in what time frames.
Did you buy anything today, Jake? Or are you waiting for even better prices?
100 Spy calls not good enough for you? 😉
I may grab some add’l ANV, SLW, PAAS and EXK at EOD.
________
Jake, I added to SLW in the high 17s so I’m in there with ya:)
You’re my hero(ine).
______
Jake-
I know you’ve liked the LED space too–veco and cree–have you nibbled on any LSCG–a pink sheet stock but has some legitimacy to it. I would recommending not chasing here, it’s doubled, but keep on your radar screen. I threw some $ at under a buck and have added some on the way up but now it’s due for a pull back.
Their main sponsor is Pegasus–do you know anything about them?
I am guessing Joe Montana and Carlos Guittierrez would not be involved with a fraud–though I thought that once about Patakia and got flamed on perf go green—but pgog had warning signs I ignored. I don’t see as many red flags here.
they’re for real … my son worked there while in college but they’re small with ties to some NY private equity investment firm (Pegasus?) and very thinly traded …. more comm’l & ind’l, they did the New Years Eve count down ball a few years ago with PHG and do quite a bit of landscape lighting in Vegas etc.
Do not know them, but will have a look.
_______
JPMorgan had some nice words for their management in a report on LED. The report is on LSCG’s website. That made me buy more. I couldn’t remember seeing a tier one firm complimenting a pink sheet management before. A gray swan.
It looks due for a pullback but one of the more bizarre trading stocks I have ever seen.
Side note, i think AIXG is a good buy in this correction. Low Euro should help them and the oil spill will keep clean energy moving forward.
“Body blow!! Body blow!!…Knock him out!!”
If you had Nintendo in 1987, you’re feelin’ me.
Gold stocks holding through this last decline.
Holy Sheisse, the world is blowing up and Ameritrade’s website is down. What an outfit.
Trying to scoop me up some discount pasta and can’t do it.
Bot some more June 111’s, kamikaze style. 3.12
________
Have you put the beers on ice yet for my visit?
Just downloaded the TD Ameritrade app for the iphone (istockmanager)
Nice.
(i’ll keep the ‘remember password’ function ‘off’ in case L decides to “watch scooby doo” Ruh roh)
let me know what you think. i may have to get that.
Downgrading to “Cooahs Laght”
___
No buy signal yet????
I bot at 1082, as I posted here. A little early, but, okay for me.
Are you talking PM’s?
The “cooahs light” was an inside joke.
______
yeah, trying to decide between EGO or ANV and PAAS or SLW ….
Hey Dani,
Good to see ya again as well.
comments getting swallowed
http://28.media.tumblr.com/wj9Eqnxmgk38b9txgvsOcH7Zo1_250.gif
tried to hyperlink the above photo in response to #6’s tdameritrade iphone app
do it
Sometimes the system thinks posted links alone are spam… try using the hyperlink methodology, next time.
__________
i do use the hyperlink, [“tried to hyperlink the above photo…”] those were the ones getting zapped into hyperspace…
anyway, i tried to get another sack full of EXK at $3.55 but settled for $3.59.
i wish somebody would get a sackful of CDE’s balls. That sumbitch has got me pinned down and i’m taking sniper fire from all sides.
CDE is a “play it small. play it safe” kind of stock… crapola mgmt, good properties.
_____
CDE like HL long ball hitters – no bazooka…
deep fried BP balls or Gulf Shrimp? check it out..
triple dub wealthmiser dotcom
cheers!
Jake – In case you missed it over in the PPT, I’m out of TLT and back into TBT 3.23% is just too low. I’ll prolly need some more PM exposure. I picked up a bit of BAA, I’ll need to average down… EXK still OK? any others? I liked EGO but I have a hard time buying it back higher than I sold it.
You might get some more bargains tomorrow. Don’t forget to hit up DMG for a mortgage redo… what are the rates for a 15 year now?
I still like SLW, EXK, ANV, PAAS, RGLD, GDX, — get ’em slow in case we have some kind of weirdness.
___
Thanks. Tomorrow should be another interesting day.
why no EGO ?
Just forgot it… EGO’s great too.
And XRA.
______
http://jsmineset.com/2010/05/20/in-the-news-today-548/
4. If you are trading gold on spec margin admit you are not a trader but instead someone with a gambling addiction.
LOL.
Love Sinclair, he never gets old.
_________
Alphadawgg siting at Fly’s place ….