Give Gold Less Attention 5 comments
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The gold bugs are in disarray. I feel for them. Truly. They have it right for the long-term; but we are not buy-and-hold investors; we are traders. We cannot take -25% losses and more and stay in the game. It’s a tough game, and job #1 is to protect capital.
Now the gold bugs understand where I am coming from. I am not the enemy. Governments that overspend are the enemy, and in time those legislators and their taxpayers will pay for their mistakes.
Nobody missed these words that started last week’s Week In Review:
In a nutshell, the precious metals are now in a confirmed Bear, and the gold bugs and silver crazies have been duped by their preachers. Now the flock is hearing all the old conspiracy theories, and the dialogue is getting more insane by the day.
As I have been writing all along, the goldminers and the gold bullion would be the last off the dance floor. Now you see the evidence. Speculation, which is linked to other prices, rises and falls in cycles. In the aftermath of gold’s plunge, however, I have no time for more explanations. I explained the process long before and then again as it happened before your eyes. Now it’s time we look forward.
The share prices of the metal miner majors will provide the best clue to future metal commodity prices and the share price recovery for the junior metal producers and explorers. The charts to watch are BHP (BHP), Rio Tinto (RTP), Anglo American (AAUK), CVRD (RIO), and Teck (TCK). If you can access the London Stock Exchange, be sure to look at Xstrata (XSRAF.PK) as well.
These are the world’s major metals miners, and in the first couple days of July their share prices crashed. When all these stocks recover, then gold will recover regardless of the trend of the $USD at that point.
Gold is such a small component of the capital market; we ought to give it less attention. There is so much more going on and it’s all great stuff. Let’s see.
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This article has 5 comments:
C'mon Bill, s..t or get off the pot.
If you WISH you had the intestinal fortitude to BUY gold/silver, just look around. The economy is in shambles. It isn't going to get better in MY lifetime. Therefore, my choice is simple: BUY it!
You, and anyone else in their 50s or younger BETTER buy it, because it will be UGLY if you don't!
But, please, don't whine and feel sorry for "gold bugs", we KNOW what we are doing!
"The share prices of the metal miner majors will provide the best clue to future metal commodity prices..."
Ok. As I type, AEM is up 7% on the day.
It seems absurd that gold and miners are plummeting at the same time the treasury is printing money at a blistering rate, but the market is irrational, and it looks like the trend remains down for now. I tried to "catch the falling knife" by buying miners a couple of weeks ago, but I think I'll take my medicine and get out for now.
the ETF backup is being sold
OTC, so the remaining paper is
worthless, is supply and demand,
but not as you supposed to be...