(Remember when Kanye was witty?)
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We’ve finally done it… we’ve broken into “free air” on the Miner’s Chart — the venerable $HUI Gold Bugs Index. Come see it for yourself:
I did a lot of things today in celebration of our free air moment. First, I covered quite a few of my hedges in ANV and SLW and GDX, some at a loss some at break even. The ANV was particularly egregious, but we’ll try not to dwell on that. I still have about a 20% hedge on SLW and about 30% of ANV still hedged. You’ll note the overbought stochastics and relative strength indicators on the above chart, I’m sure. That’s my reason for retaining a little hedge.
But let’s not kid ourselves, the dollar is busted, and headed all the way to Target #4 without even a passing “hey howaya?” to Target #3. Cheggitout:
Sure, we may get a little bounce at $77, but look at what happened after that last bounce. No, I think the dollar is dead as Jacob Marley on burnt toast.
So please, get out of any silly short positions you may be contemplating “holding out” for. There’s far more easy hunting out there than going after an Alaskan grizzly with a plastic butter knife.
In addition to releasing most of my hedges today, I also doubled down on an initial IAG long call position (DEC $17.50’s) at $1.60 a piece today. My original purchase of 80 was at 90 cents each. I expect IAG to be over $20 before Santa arrives. I also added a touch more EXK, which was gluttonous of me. I now own more of that than I even do SLW, though the share price is lower.
Of course, I think EXK will be the next SLW, so there’s a method to my sleep deprived madness. I also really like RGLD here, and it looks like it’s ready to launch once again.
My best to you, and to yours.
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Well done Jake.
What about JAG? What’s your thinking there? I noted that you hadn’t participated in this one before today.
never expected a Kanye music video to accompany your musings! there is a new kenny powers game for iphone….
I’m not a huge fan of his, as you might expect, but I do like Jamie Foxx (who is the accompaniest on this in the beginning and the chorus background) and this is an exceptionally funny one if you listen to the lyrics.
“She was supposed to get the Ty-co
witcha money
But instead she got the Ly-po
Witcha money…”
I found it by searching youtube for “Goldigger.”
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Mr. Limm, what happened to your accent? LOL.
Ok, I am NOT an expert but if you go to JAG’s website, you will read that the stock plummeted after earnings last quarter on reduced gold output due to extraction issues at one of their mines. Analysts are skeptical the issue can even be resolved over the next 2 quarters. That being said, gold’s rise has lifted all boats recently. I’d just be wary of them prior to this quarter’s earnings report. Techincally, the stock looks to be in the initial stages of a breakout from a volatility squeeze but of course it could fail too.
Yes, and @5-0 as well, this is a pure technical play, most likely not a long term hold. I’ve eschewed it in the past, but it looks to be breaking out, so I grabbed a little.
By no means is it in the category of the Jacksons.
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The extraction issue is what makes them vulnerable … pay now or let somebody else take care of it
Jim Cramer: Gold Going to $2000
DZZ anyone?
Wait til gold gets to $1370 or so, first.
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Very timely purchases of EXK, my friend. Happy to be along for the ride.
When will I learn not to sell my PM holdings so soon? EXK and BAA both…
It is, after all, a bull market m’boy.
Where is Mr. Partridge?
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JG – if one (being myself) was to jump into this space (being gold/silver) & as one who’s never purchased a miner, gold, or anything to do w/it, etc …
… could I infer that IAG and/or EXK would be 2 of your top choices?! that one could ‘tag along’..
Regards.
He’s humping Mr. PearTree
(i’m here all week)
Gregory —
Welcome to the bull market. My advice would be to build a position over the next several weeks. You don’t want to chase here. We are parabolic right now, and a sharp correction is due. After that, however, it’s clear sailing for several months, as long as you don’t let the bull throw you off. Good luck.
I answered him in a relatively long post but it got swallowed. I can’t access my log in here at work, but when I get home, I’ll release it from posting hell.
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In retrospect, the success of your call for DX to 77 or so was inevitable: that’s the lower trend line. Please note that everybody now believes the dollar is doomed. Is a decisive break of the lower trend line in the cards? Not if we’re in for a depression.
That’s eggsactly what Ben Bee is thinking.
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Jake,
I bought PAAS and SSRI at the same time about a month or so ago and they have both more than doubled. It’s time like this that I wish I would have thrown the whole port into them. Oh Well.. could have.. should have ..would have.
5-0, who’s your discount broker ? I could use some heavily discounted stock buys like that.
I don’t think they’ve doubled… not SSRI at least.
They’ve all done decently. Maybe SLW or PAAS the most.
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