It’s Oaks and Derby time in the Bluegrass, and the Jakester’s stocks are plungeroonying like so many suicidal swan divers off a Wall Street skyscraper. My response? I shrug and hold, as I know we are approaching a cycle low in the commodity sector, and gold and silver prices are hanging hard even as the stocks in the Gold Bug Index (Baby $HUI) continue to squeeze my upper heart ventricles like 45 years of excessive bacon. There’s a reason I feel that pressure and it’s because the gold and silver miners are woefully under-performing relative to their underlying commodities… at an almost historical level:
This chart has me hankering to add to my recent purchases, frankly. But in the interest of capital preservation, I am going to space out buys over the next couple of days. I am going to start with some AEM (I like the dividend), and then add to my SLW, EXK and yes, RGLD. Three year bargains in ANV, IAG, IVN and many others. Look around, shop carefully. Watch the rebound back to that 200 day EMA above. Interesting, no?
I am at the track with multiple clients tomorrow so I’ll have little time in between gambling like I know what I’m talking about and sipping juleps, but I will try to check in on you all with my fancy new phone, God willing.
Best to you all, and Happy Derby!
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