Recs
November 04, 2009 – Comments (5) | RELATED TICKERS: GDX , GLD , UDN
Fed think the weakness of USD is just a reverse of credit crunch leaving the safe haven... So we ain't see nothing yet on dollar slide.
I went and keep on adding more for long term (1+ year) CALL options for GDX and miners ...
I bought gold when it was <$1k. Now I believe it is in a bubble mode because for many months (or years) it has being increasing at a faster rate than UDN.
I hear a lot of people saying that it is still undervalued. Also, looks like everybody wants to jump in. However, isn't that the kind of actitude that drives bubbles anyways?
I understand that the USD is going down, but not that fast.
Didn't the 2+% jump yesterday in gold ring a bell (Indian banks are buying bullions from IMF)?
If USD is just weak relative to other currency, then GLD/UDN should stay about the same. However, there are forces of diversifying USD into precious metals. The is the trend to stay for a longer time until US economy come back strong (still have to be relatively stronger than many other countries).
CB,
Amen... Good strategy.
They are hammering the miners relative to gold. My theory is they are trying to discourage those holding miners to get in at better levels. A lot of the big boys missed out on the
We'll see. Time will tell. Glad to be in PM miners now.
JFC
JFC,
Days like last Friday (when financial and/or commodity sectors are hammered) was an excellent time to add PM stocks.
Today is an interesting one. Large cap stocks are relative stronger. When the DJIX was up 140pt, TZA is only down 1% and it ends up almost 3% at the end of the day ...
I'm having the feeling that problem in CRE is going to kill many regional banks soon. So I also bought short term puts of regional banks and some retailers. Lower consumer confidence is telling us that this Xmas sales is going to be quite bad for retailers ...
Wait, who is hammering the miners? GDX has nearly tripled off the low this year and stocks like IAG are up 500%+ and trading at absolutely unreal valuations. I understand miners used to be undervalued but times have changed, they are rapidly reaching full valuation, and even past that in many cases. It's as if supply and demand have been repealed and every single stinking mining company in the world will be able to double their metallic output without knocking down the price of the metals they are mining. Miners are WAY out-of-whack at the moment, and particularly when cash costs start surging due to rising oil, you're going to be very disappointed by the cash flows from the miners.
View More
Terms & Conditions
RSS Headlines
Fool UK