as part of our
For those taking close interest today there was an interesting
move in gold prices as the below chart shows. A 'V' shaped bounce
of some $35.00 or so just before the close must have given a few
gold bulls a real scare. Gold dropped briefly below $1720.00 so we
can only imagine that someone has made a rather fortuitous purchase
at this level.
However, if this sudden drop had occurred a few minutes later
then we would have had a dramatic closing price for today's trading
session in New York. Granted we would only need to wait 30 minutes
or so before trading re-commenced when we assume that a more normal
price level would have been achieved. On the other hand trading
could well have flat lined through the Asian session and on into
London as traders tried to figure out just what was going on. It
would have been a question of what do they know that we don't know,
causing a short term standstill in activity as investors would not
want to be caught on the wrong side of this trade.
So, the white knuckle ride continues and volatility is the order
of the day which will continue to shake out the weaker hands, which
in turn presents investors with another buying opportunity before
this bull gains some traction and gold prices head north with some
This rally in gold and silver prices is coming and we expect to
witness a serious upward charge over the next few weeks and months,
so make sure that you have positioned yourself accordingly.
Going forward we will continue to acquire both physical gold and
silver as we are of the firm belief that holding these two metals
is a very good investment.
As for the mining stocks, this sector has yet to perform
relative to the risk involved, so our stock purchasing program is
on hold and has been for some time. In order to shoulder the myriad
of risks inherent in the mining sector we require a return above
and beyond that of gold and silver, which is not available to us at
the moment. We are constantly monitoring this situation and once we
detect that the tide has turned in favor of the producers, we will
look to add to our current holdings. If this sector is as oversold
as many think it is then the turnaround can't be far away.
As options traders we would also look at the possible
opportunities to implement options trading strategies on those
stocks which are likely to outperform the Gold Bugs Index, the HUI.
This would be an attempt to obtain a triple
play, whereby the underlying asset moves higher, the stock moves
higher on a ratio of say 4:1 in percentage terms and the associated
hit the ceiling. This type of trade appeals to those of a more
cavalier nature, but should not be ruled out as a conservative
approach to options trading can give your embattled
a shot in the arm. This is not for the faint hearted though, but
then again neither is the mining sector in general.
Your investment plan should be firm by now; it's a good time to
make those acquisitions that best fit with your own unique
objectives, targets, cash flow, personality, aversion to risk, etc.
We are all different so one plan does not fit all, so be brave and
execute yours in your own time ignoring the white noise emanating
from the mainstream herd.
Those who choose to hold the folding stuff will find that their
wealth deteriorates as every whirl of the printing presses debases
their hard earned cash, so what are you waiting for? In our very
humble opinion its a case of act now or pay later.
We are pleased to inform you that we have now achieved more
return since inception.
Disclaimer: www.gold-prices.biz or
makes no guarantee or warranty on the accuracy or completeness of
the data provided. Nothing contained herein is intended or shall be
deemed to be investment advice, implied or otherwise. This letter
represents our views and replicates trades that we are making but
nothing more than that. Always consult your registered adviser to
assist you with your investments. We accept no liability for any
loss arising from the use of the data contained on this letter.
Options contain a high level or risk that may result in the loss of
part or all invested capital and therefore are suitable for
experienced and professional investors and traders only. Past
performance is not a guide nor guarantee of future success.