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How to play the range bound gold price

June 23, 2016

Doc joins us today to focus on the precious metals prices. Gold continues to be range bound but certain stocks have been preforming quite well. We have some ideas on where the gold price will bottom on this move down and when a good time to continue to accumulate will be.

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Discussion
22 Comments
    CFS
    Jun 23, 2016 23:46 AM

    For the gold bugs:
    http://www.macrovoices.com/macro-voices-mp3/106-mv-rvtv-2016-06-19-simon-mikhailovich/file

    Have a cup of coffee and let not your attention drift at 30 minutes.
    It is a good interview, even if a month old.

      Jun 23, 2016 23:18 PM

      Thanks CFS

    CFS
    Jun 23, 2016 23:50 AM

    Silver and palladium, both hanging up, Cory.

    Jun 23, 2016 23:50 AM

    Doc, before you buy IAG you’d better read what Moriarity thinks of their management.
    Where is PPP’s lower BB today? Canada’s PM Trudeau says he won’t help PPP in its dispute with the Federales. Trudeau must go!

      Jun 23, 2016 23:09 PM

      Ha! They said that about his father too. Didn’t work.

        Jun 23, 2016 23:25 PM

        +1
        Pierre wasn’t a fan of freedom or dissenters either…see FLQ crisis for info.
        Ontario has been bleeding good auto jobs to the Mexicans for years now. That is more important to Trudeau as it is a bigger part of the Ontario economy. Also of note is Kathleen Wynne, who is Ontario’s Premier, is also a liberal. This is why I am not in TSX:P yet. It could easily get halved from these levels. Plus how long do these NAFTA “disputes” take to run through the courts?

      B
      Jun 23, 2016 23:52 PM

      img hung around $2 for 6-7 mths, now its over $5.
      Not the best but ok, and its high was over $20. so it might move up yet.

      That was one Ron Paul owned some time ago, no idea if he still does.

      Pretty much anything from the kitco list has been fine, alot of others too of course.

    Jun 23, 2016 23:25 PM

    I am playing range bound gold by switching over to Silver.

    Jun 23, 2016 23:35 PM

    Kicking the tires on Tesla: bought a small position to start.

      Jun 23, 2016 23:27 PM

      I thought that stock was a good short? Maybe it has already cratered?

        Jun 23, 2016 23:37 PM

        Paul,
        just to clarify, if I remember correctly someone on this site (maybe Doc) was thinking of shorting Tesla about a month ago. I don’t follow it, but I imagin it will got a good bid today and tomorrow.

    Jun 23, 2016 23:35 PM

    Panic in the City over EU vote: Banks order in bunk beds, sleeping bags and takeaways for traders working through the night and ATMS are stuffed with money (but banks are set to cash in whatever the result)

    Read more: http://www.dailymail.co.uk/news/article-3656297/The-bankers-ready-make-killing-EU-referendum-result-Hedge-funds-banks-bring-bunk-beds-sleeping-bags-takeaways-exploit-private-exit-polls-cash-soon-markets-open.html#ixzz4CQuBoqTW
    Follow us: @MailOnline on Twitter | DailyMail on Facebook

    Jun 23, 2016 23:19 PM

    Gold starting its’ move down after conventional market close.

      Jun 23, 2016 23:37 PM

      Doc My technicals are telling me that gold is gonna rise to 1298-1311 in the coming days.

        Jun 23, 2016 23:06 PM

        Don, interesting. I can see that happening after this move down.

      Jun 23, 2016 23:56 PM

      Doc – Good discussion today with Cory regarding the different sub-sectors within the Gold miners. I usually break them down into:

      1) Majors (more than a million ounces of Gold production per year)
      2) Mid-Tiers (More than 100,000 ounces per year of production up to 1 million ounces)
      3) Smaller Producers (less than 100,000 ounces per year of production in general)
      4) Development Companies / Near term producers (building mines, mills, processing plants, final permitting, and getting ready to pour Gold in the next 1-2 years)
      5) Optionality Plays – Well defined deposit with a Pre-Feasibility Study, or Feasibility and a good mineral bank and business plan that can be acquired
      6) Prospect Generators – Normally a number of projects in different jurisdictions, some Net Smelter Royalty streams, and they JV their projects to other companies with the budgets to explore them
      7) Explorers – They drill for thrills and can keep spinning out the hits to Majors & Mid Tiers that want to buy ounces in the ground.
      __________________________________________________________________________

      *Really there have been winners in 2016 in each category, but they had something unique or a value-add tr a bunch of newletter writers pumping that caused the markets to bid those stocks up.

      Most of the biggest gains I experienced this year were actually in the Small Gold producers and Development / Near-term producers (some of whom actually have gone into production in the last year or so). Some Mid-Tiers also did well, and there were financial reasons that Yamana and Iamgold didn’t participate as much as other Mid-tiers did. Both will have good leverage to Gold though as the prices start to rise.

      Cheers!

    B
    Jun 23, 2016 23:17 PM

    Geez Don, gold just hit 1280, looks like your technicals are working.

    Jun 23, 2016 23:40 PM

    hOW TO BEAT THE GOLD RANGE BOUND PRICE. THIS A.M. GOLD UP $64 ON BREXIT WIN!!!!

      Jun 24, 2016 24:12 AM

      Yep, Gold is doing it’s job this morning. Such good news longer term for the UK, but of course, the lame stream media is only discussing the fear and uncertainty. It escapes them that this may actually end up benefiting the UK economy, bring back industry in sectors that had been decimated by EU regulation, and allows the Brits some autonomy from the oppressive bureaucracy in Brussels.

      Thank goodness I closed out my short volatility position (SVXY) and took out a long volatility position (UVXY) in after-hours trading!! (Wowzers). At that time I felt the stay vote had won, but that I had capitalized on the fall in volatility. I speculated that there may be a turbulent Friday anyway due to people closing out options positions. I had no idea the Brexit vote would succeed or that it was going to spike volatility this much.

      Between the Volatility spike and the rise in safe-haven assets like the Precious Metals, is looking to be a very profitable Friday indeed.

      Good luck everyone in your investing!

        Jun 24, 2016 24:17 AM

        Can’t resist Excelsior but I have to say it……

        “This is just one days trading”

        🙂

          Jun 24, 2016 24:24 AM

          Yes, agreed, but I’ve already made a larger percentage gain in the last 2 days playing both directions of the volatility trade, than most investors will make all year, so I’m a happy camper. I’ve been buying Gold & Silver development companies all week, so the rise in the PMs is just the icing on the cake. 😉

          You are correct that next week things may simmer back down a bit, but with Gold well above my 2 lines in the sand ($1307.80 and $1321.50) then a close above those levels will be very significant for the longer term technically.

          I’m trying to readdress my playbook as I actually wasn’t expecting the Brexit outcome. I was betting on the unloved development plays in PMs because I didn’t think they’d get hit as hard as the larger producers. Now, with this dynamic in the PM spike, I’d have done much better off being in the mid-tiers and small producers.

          It’s gonna be a wild wrap to the week!