As some of you know, I’ve been weathering this storm by deploying cash sparingly into what I consider to me vastly oversold conditions in the PM markets, especially the miners. Given historical metrics, the current $HUI and $XAU are pricing gold in the $800-1000 range. Needless to say, this has historically been an opportunity for those beleagured names.
Now I know the PM space has not been a happy one as of late, but given that nothing has changed with respect to the global liquidity situation, I am not convinced that there is some change in the current bull trajectory afoot. It appears that we are now approaching a long term support area as well.
As my good friend Gary Savage over at the Smart Money Tracker has been kind enough to point out, the 75-week simple moving average has been support for this bull for over ten years now with the brief exception of the 2008 meltdown, which marked the bottom of an eight year cycle event. Right now that line lies at $1591 an ounce, which we are (briefly, I think) below this morning . As a result, I think this is the time to mince into the market and make some quick coins.
I was not in the office yesterday, so I did not report my buys in SLW and AEM, and I apologize. It appears, however, I may have been a bit early. Today, I will add to those small purchases and throw some RGLD and perhaps even GDXJ in that mix. Make no mistake the juniors have been murdered here, and quarts of my blood are being transfused into them as we speak. When these things bounce, however, it’s going to be swift and eye-boggling. Go small until then, but be ready, as I think it’s going to be very soon….
Until then, I continue to be your honarable blood donor, down here at the Red Cross…
12 Responses to Mincing In
How was the rest of the Derby, Jake?
I’m going to step into the silver market with some purchases if the spot price hits $26-27.
Derby was great, but for the first time in a number of years, I did not pick the winner. Mrs. Jake did, however.
Ironically, my not getting the winner usually coincides with a good year for me, so we shall see. Thus far, that ain’t true on the market side, lol. “Chairman Barack giveth, and Chairman Barack taketh away,” I guess.
I like that target on silver, but not sure we’re going to get there. Maybe today?
Thanks Mr. Limm
sounds like you’ve been living the good life…
giants, horses, business…have been watching QRM AVL lately, getting cheaper and cheaper, any change in the story? thinking of entering the fray…thanks!
Those are long term stocks… like the PM mining juniors, I want to accumulate here. You have to look at these things like a tortoise and realize the assets inside these things are not going to go obsolete any time soon…
Thanks for reporting in this morning. I made the stupid mistake of not removing my stop on SLW yesterday and got nicked this morning. Other then that, I’m still holding about 80% pms. After your earlier posting, I decided to put attendance at the Derby on my bucket list.
Hmm i did not see this post show up on the site this morning.
I am down about 10% on my massive GDX position…crazyshit. Doing ok on EXK and SLW bought just yesterday.
I think i will wait for some more confirmation of a bounce and then load up more.
defcon 2 at least over at smt. lots of news tomorrow plus bearded clam. big swings ahead though it could put in the bottom we are looking for. GLTA.
The old stock of the decade Extorre has been crushed. Where does it go from here?
Bleeding felt here on my $SLV position too.
But I’m not deterred by some vampire sucking on me, as long as she’s super attractive and polite about it… . As one of the last red-blooded, non fluoride impotent bachelors in America, I am a highly prized commodity in the reproduction sector.
Anyways. I’m taking some of my Fx profits to the local PM dealers. Buy the real on the dips – so goes B.R.A.’s vote.
My “safe” silver play, SLW, is now 17% underwater. How much more downside do you think is likely? Getting roasted over heah.