After all, this is why we are socking away wins for a rainy day:
So yeah, the Jacksons (up a collective 36.5% since May 1st as of today’s close) may be doing egregious “loaves and fishes” type miracles with your cash pile, but let’s keep our nose to the grindstone, as you’ll need that dough when a ham on rye, hold the mustard sets you back $36.25.
Remember we are all about dollar destruction here. Take a look at that chart and ask yourself if the Congress and the Fed are going to support that kind of spending (not to mention the huge Medicare and Soc Sec liabilities) via the good old fashioned “belt tightening” of increased taxation and spending cuts?
As they say in Texas, “No, hail no.”
So let’s be opportunistic and remember that there will be pullbacks in these metals, but that we need to manage our positions to maximize cash flow in this critical period. For me that means selling calls at critical junctures, and even trimming the sails to raise cash from time to time. If I’m reading things right, however, you are in for a bumpy, but enjoyable continuing ride here.
Keep in mind Rubicon Minerals Corp. (USA) [[RBY]] has broken to new highs yet again, and Allied Nevada Gold Corp. [[ANV]] remains a favourite pick. I may take some leverage (ie, bot calls) off the table in Silver Wheaton Corp. (USA) [[SLW]] soon, as it’s run faster than it’s brother silvers by far, with over 66.8% returns since May 1st inception, while [[PAAS]] and Silver Standard Resources Inc. (USA) [[SSRI]] are only at 43.5% and 29.2% respectively. I think SSRI especially will gain from here.
On the junior level [[EXK]] continues to be a junior trooper, and I continue with a leveraged position in [[CDE]] as well, because of the acute lack of overhead. I also own Hecla Mining Company [[HL]]
On the gold side, IAMGOLD Corporation (USA) [[IAG]] remains the monster of the pack, with 85.8% returns since inception, but I’d look for a pullback here before jumping in. Eldorado Gold Corporation (USA) [[EGO]] and Allied Nevada Gold Corp. [[ANV]] still look like they can pack punch here, however, so keep an eye out on them and yesterday’s mention Gold Fields Limited (ADR) [[GFI]] .
Last, non-PM Monsanto Company [[MON]] grabbed back some ground today but continues to be undervalue in the Jacksonian sphere. Still a “grandkids pick.” The Andersons, Inc. [[ANDE]] –up over 106.5% since Jackson inception — is still our leader, and looking for $39 as it’s next “achievment.”
I’ll have more tomorrow, but let’s shut it down with a veritable classic from my youth. Share it with a favored son of daughter, and it’s likely they’ll never forget it:
[youtube:http://www.youtube.com/watch?v=P7tQVEEPWv0 450 300]
Slange.
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Keep an eye on the Jacksons as we head into the meat of this breakout. Besides IAG, there’s also Eldorado Gold Corporation (USA) [[EGO]] , [[PAAS]] , Silver Standard Resources Inc. (USA) [[SSRI]] and my favourite (sic) long term gold play Royal Gold, Inc. [[RGLD]] . Also, as I expected, Thompson Creek Metals Company, Inc. [[TC]] had a nice rebound-breakout day today as well.
