from Portfolio Update: Buying More PMs - Short Side of Long
Source: Short Side of LongChart 2: Price is compressed in a technical triangle and its decision time
The fact that Gold has barley sold off
and still remains above $1,200 per ounce, similar price where it
traded 18 months ago, indicates relative strength and buying interest.
Other commodities, such as Crude Oil, have not been as lucky with
greenback moving up so high. Eventually the US Dollar rally will pause
and take a breather, because nothing can keep rising vertically forever.
It is my view that Gold will outperform when that time comes.
and still remains above $1,200 per ounce, similar price where it
traded 18 months ago, indicates relative strength and buying interest.
Other commodities, such as Crude Oil, have not been as lucky with
greenback moving up so high. Eventually the US Dollar rally will pause
and take a breather, because nothing can keep rising vertically forever.
It is my view that Gold will outperform when that time comes.
Now... most trades would like to know
when that will happen? Because I do not have a crystal ball, I cannot
answer that question like other so called "experts". But what I can say
is that the current price action in Gold shows a major compression in
the form of a technical triangle. This pattern is edging closer and
closer to a break in either direction, which should give us further
clues (refer to Chart 2).
when that will happen? Because I do not have a crystal ball, I cannot
answer that question like other so called "experts". But what I can say
is that the current price action in Gold shows a major compression in
the form of a technical triangle. This pattern is edging closer and
closer to a break in either direction, which should give us further
clues (refer to Chart 2).
I believe this break will be on the
upside and I recently purchased some Gold via an ETF (NYSE Symbol: GLD).
Depending on how the price behaves, this could either be just a short
term trade or a longer term investment.
upside and I recently purchased some Gold via an ETF (NYSE Symbol: GLD).
Depending on how the price behaves, this could either be just a short
term trade or a longer term investment.
Chart 3: Miners have been terrible performers since 2011 & appear cheap
Source: Short Side of LongFurthermore, Gold Miners have become
extremely oversold and now trade at dirt cheap valuations. When compared
to the Gold price itself, miners trade at the biggest discount since
2000... around the time last major precious metals bull market started
(please see Chart 3). This is even more true when we look at Gold Mining
Juniors (NYSE Symbol: GDXJ), which are down by almost 89% from the
highest high in late 2010. I've started a small position here to test
the waters (similar to Russia and Uranium if you refer to Chart 4).
extremely oversold and now trade at dirt cheap valuations. When compared
to the Gold price itself, miners trade at the biggest discount since
2000... around the time last major precious metals bull market started
(please see Chart 3). This is even more true when we look at Gold Mining
Juniors (NYSE Symbol: GDXJ), which are down by almost 89% from the
highest high in late 2010. I've started a small position here to test
the waters (similar to Russia and Uranium if you refer to Chart 4).
Portfolio Update: Buying More PMs - Short Side of Long
The MasterMetals Blog
@MasterMetals
No comments:
Post a Comment
Commented on MasterMetals