Miner (Gold) Strategy

Gold and the gold mining stocks, for many become a very emotional decision. There is just so much written on the subject, also with a good deal of emotion.  Full disclosure here, I am long the Fidelity Select Gold Portfolio that appeared on the Fidelity Select ranking list in the number one slot over the last six months. I actually use that strategy in my IRA at Fidelity.

If you are so inclined then let’s look at some alternatives. Do not become so inclined because I have a position, become inclined because you like the idea!

A weekly look:
FSAGX

OK so let’s look at some stock and ETF alternatives. I’ll include the chart with the Chandelier and perhaps the S.A.R.

AEM

An interesting note on the AEM chart, two big upside gaps filled before resuming the up move. Each time the chandelier was broken to the downside as the gap was filled, then of course broken to the upside again. We have an unfilled gap at call it $34. If the gap fills the chandelier will break again. Then using the chandelier to reenter would be neet.  😎

SBGL (Sibanye Gold Limited) presents a slightly different picture. Look at what overweight can mean!

SBGL

GDX (Market Vectors Gold Miners ETF):

GDX

There used to be an old adage or cliche’ back in the 1970s: Put 10% of your portfolio into gold and hope it goes to zero. Why? Because that would mean the other 90% of your portfolio is doing well.  Back then Gold traded as an inflation hedge and inflation was high. It has not traded as an inflation hedge since, well In my humble opinion anyway. Gold acts as any other sector or industry group, on it’s own. Forget the emotion, just play it as you see it and forget the forecasts of $5000 per oz.

Remarks and data provided are for informational purposes only and are provided without warranty of any kind. Due diligence is necessary for all investment or trading decisions to be made by you. The purchase of securities discussed may result in the loss of some or all of any investment made. Trading stocks, options, or other investment vehicles are inherently risky. It is strongly recommended that you consult a stockbroker or financial advisor before buying or selling securities, or making any investment decisions. You are responsible for your own investment decisions.



Talking Points and How Much Higher Will Oil Prices Go?:

The Halftime Report (Robert Seawright)
Why Are the Super-Rich So Angry? (New Yorker)
Central Banks Ignore The BIS At Our Peril (Sigmond Holmes)
You may want to ignore the ‘next big thing’ in mutual funds (MarketWatch)
What stock market’s first half tells us about second half (Mark Hulbert)
What Momentum on Climate Change Means for Business (HBR)
The Re-Explosion of U.S. House Prices Is Over (Business Week)
Housing Sales Hurt as Fewer Immigrants Chase Owner Dream (Bloomberg)
Twitter’s Revolving Door Spins Again (NY Times)
The Japanese Government’s Bet Against Tesla (Slate)
What Kind of Investor Are You? (A Wealth of Common Sense)
“Ending in tears” doesn’t mean the market goes down right away (Humble Student
It looks like Obamacare is working (Quartz)
Google Ventures’ Secret to Productive Meetings: A Timer (Businessweek)
Climate-change summary and update (Guy McPherson)

How Much Higher Will Oil Prices Go?

Have a Great Day!