Gold And Silver Royalty Companies, Part 2: Franco-Nevada Corporation [View article]
Kudos for using a relative strength point & figure chart....one of our favorite tools for doing comparative price analysis.
If you take that one step further and repeat the analysis replacing RGLD for HUI, don't you find that FNV is pretty consistently the stronger performing company over the past 4 years?
That pattern could change, but as things stand, FNV gets our vote over RGLD in the streaming gold royalty sweepstakes.
Gold is a TRADER'S paradise. We love the volatility.
"Gold prices are governed by several variables like US exchange rates, oil prices, dollar index, Dow Jones Industrial Production Index, USA real interest and inflation rates."....... Not!
Gold prices are governed by market SENTIMENT. That is, the price of gold is a composite of the market participants' PERCEPTION of the variables listed above, and more. There is a difference between reality and the perception of reality.......and the latter accounts for the price of gold.
Gold And Silver Royalty Companies Part 1: The Pros And Cons Of Royalty Companies [View article]
Yes, our trade focuses on the return, yours on owning the shares. The nice thing about options is flexibility to structure the trade to fit your objective and risk tolerance.
Here's another one that you might like. Sell SAND June 7.50 puts for 1.25. Though they are not presently trading there, they were well above that two days ago. If SAND trades below 7.50 in sixty days, you'll own the shares at 6.25 (a 50 per cent discount off its price from the beginning of the year).
SAND is admittedly more risky to own than SLW. However, if the options expire worthless, the annualized return is about 100%.
The True All-In Cost To Mine Gold: Complete 2012 Figures [View article]
Market sentiment doesn't care about the industry's cost structure. While the effect may be a contraction of supply, industry cost structure will not spare inefficient miners. There are too many other variables impacting price.
Don't Get Caught Up In Panic Selling And Capitulation In Precious Metals [View article]
Robert, your "reply" is an irrelevant ramble that doesn't remotely address our criticism. Perhaps you could write a novel or something about the “ancient wisdom of the Chinese” (which has absolutely nothing to do with our comment, unless that so-called wisdom includes the ancient proverb “do as I do, and not as I say”).
The criticism is that this author is a precious metals perma-bull in his SA articles. However, 5 months ago he quietly liquidated his long position in his referenced securities and said nothing about it in these pages. Now, he urges readers not to dump positions that he has long since exited.
In response to other criticisms (chiefly that his “predictions” are often wrong and he only “recommends” BUYING precious metals), he replies that he is “a long term investor”. His comments don't fit the facts.
You say that the “biggest factor in creating wealth long term in markets is joining a long term bull market and holding through corrections to the bubble phase.” Let's assume that you are correct (a thesis with which we respectfully disagree).
This author clearly doesn't believe it either. Otherwise, how does he account for the FACT that he liquidated his long standing “long term investment” five months ago? Since you want to champion the author's cause, have at it.
If you want to try to explain for the author why he liquidated those positions, yet is now telling his readers not to sell positions that he has already bailed out on, we would be all ears. However, please try to stay on topic.
The Downside Of Buying Stocks On Sale Through Selling Puts [View article]
Excellent point.
Neither author even references THE most important factor to consider when implementing this strategy....option implied volatility.
Not to take sides, but the author of the original article doesn't explain why tying up your money in a long term put option that caps your return at less than 10 per cent (but doesn't cap your risk) is better than simply buying a stock that one apparently projects will rise more than 10 per cent over the same time.... think about it. If you don't think that the stock will 10 per cent in value in more than a year, then why buy it (remember, the premise of the original article is that you want the shares assigned)?
We are experienced put sellers; however, selling long term puts deeply in the money is not our preferred strategy.... and we NEVER sell an option without examining an option's implied volatility.
Don't Get Caught Up In Panic Selling And Capitulation In Precious Metals [View article]
You are "a long term investor" yet you have been flat for the past five months in the securities you list above in which you previously had long positions. Now you are telling people NOT to sell positions that you liquidated months ago.
By the same token, when you liquidated the previously mentioned positions there was no article recommending that people should sell. In fact, you never tell people to sell.
To give you the benefit of the doubt, what you say in relation to what you do is confusing at best.
Sprott Asset's John Embry: Don't Sell Your Metals [View article]
http://bit.ly/174JOOB
.... as is typical, this is just a sales pitch; it isn't analysis. Shame on SA for publishing this drivel.
Central Bank Buying Of Gold Is A Double-Edged Sword [View article]
Good comment.
Gold And Silver Royalty Companies, Part 2: Franco-Nevada Corporation [View article]
If you take that one step further and repeat the analysis replacing RGLD for HUI, don't you find that FNV is pretty consistently the stronger performing company over the past 4 years?
That pattern could change, but as things stand, FNV gets our vote over RGLD in the streaming gold royalty sweepstakes.
What Determines Gold's Price? [View article]
Gold is a TRADER'S paradise. We love the volatility.
"Gold prices are governed by several variables like US exchange rates, oil prices, dollar index, Dow Jones Industrial Production Index, USA real interest and inflation rates."....... Not!
Gold prices are governed by market SENTIMENT. That is, the price of gold is a composite of the market participants' PERCEPTION of the variables listed above, and more. There is a difference between reality and the perception of reality.......and the latter accounts for the price of gold.
Gold And Silver Royalty Companies Part 1: The Pros And Cons Of Royalty Companies [View article]
Here's another one that you might like. Sell SAND June 7.50 puts for 1.25. Though they are not presently trading there, they were well above that two days ago. If SAND trades below 7.50 in sixty days, you'll own the shares at 6.25 (a 50 per cent discount off its price from the beginning of the year).
SAND is admittedly more risky to own than SLW. However, if the options expire worthless, the annualized return is about 100%.
Gold And Silver Royalty Companies Part 1: The Pros And Cons Of Royalty Companies [View article]
If the options expire in five months your annualized return is over 25%.
If the stock is assigned you will own it for 19.50.
Your risk in the trade is that SLW will be selling below 19.50 in mid September.
Flash back to a month ago. Did you think you'd have the chance to buy SLW below 20.00 or get paid to pass on the deal?
Gold And Principles Of Investing 101 [View article]
Another resource and easy read:
Against the Gods by Peter Bernstein.
http://amzn.to/11AT3pb
The True All-In Cost To Mine Gold: Complete 2012 Figures [View article]
Don't Get Caught Up In Panic Selling And Capitulation In Precious Metals [View article]
Don't Get Caught Up In Panic Selling And Capitulation In Precious Metals [View article]
The criticism is that this author is a precious metals perma-bull in his SA articles. However, 5 months ago he quietly liquidated his long position in his referenced securities and said nothing about it in these pages. Now, he urges readers not to dump positions that he has long since exited.
In response to other criticisms (chiefly that his “predictions” are often wrong and he only “recommends” BUYING precious metals), he replies that he is “a long term investor”. His comments don't fit the facts.
You say that the “biggest factor in creating wealth long term in markets is joining a long term bull market and holding through corrections to the bubble phase.” Let's assume that you are correct (a thesis with which we respectfully disagree).
This author clearly doesn't believe it either. Otherwise, how does he account for the FACT that he liquidated his long standing “long term investment” five months ago? Since you want to champion the author's cause, have at it.
If you want to try to explain for the author why he liquidated those positions, yet is now telling his readers not to sell positions that he has already bailed out on, we would be all ears. However, please try to stay on topic.
The Downside Of Buying Stocks On Sale Through Selling Puts [View article]
Neither author even references THE most important factor to consider when implementing this strategy....option implied volatility.
Not to take sides, but the author of the original article doesn't explain why tying up your money in a long term put option that caps your return at less than 10 per cent (but doesn't cap your risk) is better than simply buying a stock that one apparently projects will rise more than 10 per cent over the same time.... think about it. If you don't think that the stock will 10 per cent in value in more than a year, then why buy it (remember, the premise of the original article is that you want the shares assigned)?
We are experienced put sellers; however, selling long term puts deeply in the money is not our preferred strategy.... and we NEVER sell an option without examining an option's implied volatility.
Don't Get Caught Up In Panic Selling And Capitulation In Precious Metals [View article]
By the same token, when you liquidated the previously mentioned positions there was no article recommending that people should sell. In fact, you never tell people to sell.
To give you the benefit of the doubt, what you say in relation to what you do is confusing at best.
Are You A Scared Silver Investor? [View article]
Follow the elephants....(or, if you take a look at this COT chart, the largemouth bass).
http://bit.ly/V8abkq
Good article, as usual.
Central Bank Buying Of Gold Is A Double-Edged Sword [View article]
If he really believes what he has written, he's drinking the media kool-aid. If he doesn't believe it, he's making the kool-aid.
..... think about it.
Dow Doomsday: Why It Might Happen Soon [View article]
"Doomsday"?
...... cut it out.