The importance of downside protection in gold stocks
Erik Wetterling, Founder of The Hedgeless Horseman joins me to share his portfolio strategy of focusing on resource stocks that have underlying value which will give investors some protection on the downside. This ties into Erik’s theme of finding value but the arguments is since all gold stocks have sold off the argument is value is everywhere.
Apologies for pretty much not answering any question and instead going on off road rants lol
Hey amigo, your rants are always entertaining and informative. 🙂
I like that you recently posted your portfolio update:
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Horseman’s portfolio performance (Updated August 31, 2020):
Correction: It was just the top 5 holdings that got updated this week:
Current Top #5 (as of April 06. 2021)
HH:
Did not even notice there was a rant. I think for those of us that have followed you for several years, we value your commitment to the truth as you see it. If you like a stock, you tell us the reasons. If you don’t, the same. You post your portfolio for everyone to review, which is much appreciated. Not rant …words of value.
Totally agree. Erik comes across a very decent and humble man. A very positive difference t a lot of the pundits in this space. His honest, well argued posts are highly appreciated, no need to apologize for anything.
(MMG) (MMNGF) Metallic Minerals – Keno West Results Webinar
(04/08/2021) #VIDEO webinar
Important Things To Consider Before Buying A Junior Mining Stock
by @Goldfinger on 9 Apr 2021
“Junior mining stocks can offer substantial upside returns, but not without considerable risk. This video is meant to help investors understand the risks, and also the rewards, of investing in this volatile sector.”
Good words of wisdom. Thanks for posting it.
Agreed. Goldfinger has been putting out some good tips recently for resource investors.
I use HZD for hedging against the silver price as that’s what it is designed to do. I used to use HGD for going against gold but the way it is set up if a couple of their stocks in the Solactive Canadian Gold Miners Index (for which HGD is based) goes up on a down day the price of HGD may go down on a day that the price of gold is down. For that reason I recommend HZD but NOT HGD for hedging IMHO.
FWIW:
I was looking to take my last long term Great Bear profits to invest before tax payment. I was looking at Royalty companies and had already picked up Sandstorm and added to Ely. Another thought came to mind today as my portfolio was showing a value for my Great Bear Royalty spinout shares. They had sat there with no value and no trading ability for months. Recently they were valued in Canada. We were all hoping they would come out for like 15 or 20 cents…what were we thinking. Before anyone could trade them in Canada, they moved through 1 and 2 dollars Canadian. By the time they were tradable on Schwab, they are about $3.50 US. Now that is great if you own some, but holders of Great Bear, are the holders of the original issue of Royalty shares. So, I thought I might pick up more shares but how do you value a Royalty share that only holds one Royalty and that is a Junior Miner that is still drilling and yet to determine a resource. Based on that, and the current move in Great Bear today…at the moment I am better off holding my Great Bear profits and not buying either an established royalty company or Great Bear Royalty as Great Bear itself is in an uptrend and Great Bear Royalty could easily be over priced. But, Monday may a different day. Anyway, I thought those that follow royalty companies, may find this Great Bear situation at least something to put on your radar. It is a little different than the norm.
Forgot to put the new symbol for Great Bear Royalty in US. GBRBF. Just checked price and it is up to $375 US. Of course, that is based on the Canadian move.
$3.75 not $375. If it was $375 I would be busy liquidating and moving to the South of France.
Hi David….Yes…And i would join you as your butler…..The south of France is great.
I would need a McLaren mechanic…
I just bought a little more IPT at .78 after it pulled back from .87, the 50 day MA. It hit .88 yesterday.
It sure tracks silver well…
https://stockcharts.com/h-sc/ui?s=IPT.V&p=D&yr=1&mn=6&dy=0&id=p27208168490
I have several with an upward look that are either midway between bollinger bands or near the top. Several with a gap. IPT looks pretty clean on that move and in the right direction. That would be nice if it is pointing the direction for silver.
Matt and david,
I don’t think I have ever seen another stick print candles the way impact does.. In a nutshell so unorthodox and untrustworthy despite the company being solid..
My point is this I have but purchased at much lower prices of you guys care..
Glen
Geeze my last post did not make sense..
I meant to say that impact silver has been printing candles very unusual which I hate..
I personally have buy orders much lower..
Glen
Glen, part of the reason is that it’s a pure-play silver stock unlike the majority of silver companies and part is because it is actually a pretty good bellwether if you’ve followed as closely as I have for the last 15 years. Its behavior lately goes perfectly with my bullish outlook and so does the weekly GDX:Gold chart. It just had its best weekly close since the first week of November and its first weekly close above the 50 week MA since the first week of January. Then there’s that textbook bullish MACD buy signal and, even better, take a look at that close above the narrowed and now (bullishly) opening weekly Bollinger Bands.
Those who think the miners are in for action similar to that which followed the 2016 high (meaning sideways to down for a couple years) are in for a rude awakening…
https://stockcharts.com/h-sc/ui?s=GDX%3AGLD&p=W&yr=5&mn=11&dy=0&id=p41842300837&a=635627271
Always good to get the Hedgeless Horesman’s point of view on how he approaches investing in the junior miners and managing his risk.