beabaggage

Don't Write off the Gold and Commodities Bull Run

Sharp corrections in commodities are not unusual. Follow Louise Yamada, technician, for years. She is still bullish on most although advising tight stops with long term support level in gold at around 760. Rising costs in the supply chain make incremental and marginal production expensive so cap ex and mines with high cost will be put on hold. Best way to play is basket of junior minersin safe countries like NXG, PAL,CDE, etc. (long all) which have been beaten up but have good cash, no debt and low cost mines coming on line or in production with little capex needed. Harry Dent says this pullback is/was expected this summer and get ready for the major spike to come. Best thing is to average in costs. Indian/Chinese/Russian... consumers will view gold at 800 cheap compared to 950-1000 and support demand.
very good article enjoyed it. Especially re wages-- SWC recent report says shortage of labor in mines-- they produce plat/paladium in Montana and these workers can shift to Oil/Gas for shale or other mines. (Long SWC.)