My favorite mining play has been Royal Gold (RGLD) ever since Senator Gint brought the stock to my attention. The stock has always flowed in a rather smooth manner, even when taking my coin. I prefer this type of behavior when I’m trying to build a large position. I don’t want 5-10% positions in cocaine monkey stocks like ZNGA (a current long) because my portfolio will oscillate too violently.
Today the stock is reclaiming a VERY critical support level even as the rest of the market sells off. I like the potential bottoming characteristics the stock is exhibiting and currently have no precious metal exposure. I think the stock has much work to do before I can build a full size position, but I’ve initiated a medium-sized trade today.
NOTICE: this is a trade with a tight stop until the stock proves it’s ready to start behaving again.
