What are some of the potential risks for the precious metals
LPG is with us today to discuss the potential headwinds for gold next month. Throughout this year we have seen the precious metals rising on the back on concerns over the economy and the lack of any interest rates. Even if you are in the camp that says the Fed will not rise rate and the Brexit vote will go through investors do need to be aware of what would happen if they are wrong.
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Today Bonzo? I will let you answer your own question!
LPG, i will eat mon chapeau if the Fed raises rates before the election in November.
Hi Bonzo,
I will bet that they do as it will paint a good picture of the democrats
Hello Bonzo,
Hope all’s good.
In case you are proven wrong, 2 things:
1) hope your hat tastes good
2) hope you have a good stomach
😉
Best to you,
LPG
LPG – Good segment today. I completely agree that is better to prepare than react.
We approach stocks in a similar way in that I don’t just use share price or a technical chart to influence my decision to consider a company. I first start with their story, and their primary business plan and assets. I consider which sector they are in (Gold, Silver, Base Metals, PGMs, Oil, Uranium, etc,,,,) and then I consider their place in the lineup of companies in that sector. I look at their management’s prior experience, consider the jurisdiction pros & cons, look at their AISC, costs, revenues, cash flow, and I look at the Board of Directors, and lastly key investors, strategic investors (like other mining companies), and potential JV synergies.
After I’ve established this is a company I want to follow to consider purchasing, then I start looking at the technical indicators and look for an entry point, and set goals for where I think this stock may move to in the midterm (a moving average or trend-line or prior peak, or a fib level).
Then comes the process of buying and selling partial or entire positions back and forth over time and eventually have a nice core position developed in it. Some stories I like for the long term, so it makes sense to buy and hold, but maybe not hold 100% position. There are a number of stocks that I’ll have a 25-80% position in and will add during periods, or subtract during periods. If a sector is strong and on fire, then I’ll just let positions keep running even without catalysts; however when a sector is under pressure, or I feel it may go under pressure, then it makes sense to trim some winnings if there is no news flow or catalysts coming in a particular company. Having said that, sometimes there are exciting surprises that come from out of nowhere, and you may miss a few of those if you are out or only in a partial position. However, investing hoping for Easter eggs and pleasant surprises isn’t a very sound premise, unless you feel a company is drilling and may hit something, or if you feel they are a strong takeover target.
Good luck to you in your winners you let ride 100% and may you trim well!
Cheers Shad,
Best as always,
LPG
Volatility is back in fashion and I’m making a chunk on TVIX, and the miners are going back on sale. It’s a glorious day!
AL, does it take more courage to vote for Brexit or to invest heavily in Bre-X?