MoneyWorksforMe (49.53)

MoneyWorksforMe's CAPS Blog

Peter Grandich--Extremely Bullish on Gold and Silver Miners

Recs

10

Report

August 09, 2011 – Comments (9) | RELATED TICKERS: AUQ , SNDXD.PK , GPL

Tonight while contemplating the future of the markets and in particular the mining sector, I felt the need to read several other wise investor opinions...For several minutes I sat, thinking, "Which prescient investors have I not been reading/listening to lately?" My mind, filtering through the names of various prominent investors became satisfied after retrieving the name: Peter Grandich. Grandich, for those of you who don't already know, called both the recent top in silver at ~50/oz. and bottom ~32/oz. with virtual perfection. I figured, "for help in determining future miner and spot metal prices, during these highly uncertain times who's better than Grandich?"

After visiting his website, I came across this article, which is fairly broad in its focus, covering everything from the major indexes to oil and natural gas, to gold and silver, and of course a small, but also very compelling paragraph mentioning the miners, where he asserts, "From just about every fundamental aspect, the shares are more compelling now than in any other period of my 27 years involved with the markets. "

He intends on focusing more on the miners over the next several days, so for Fools interested in this sector I strongly advise bookmarking this page and checking back for future updates...

9 Comments – Post Your Own

#1) On August 09, 2011 at 1:39 AM, MoneyWorksforMe (49.53) wrote:

Surprise, surprise...the link doesn't work...Well here it is--copy and paste for real results...

http://www.grandich.com/2011/08/special-update-1000pm-est/

Report this comment

#2) On August 09, 2011 at 6:32 AM, outoffocus (26.86) wrote:

I agree. The mining stocks don't seem to enjoying all of the gains the metals have made in the past few weeks. Time will tell.

Report this comment

#3) On August 09, 2011 at 8:43 AM, MoneyWorksforMe (49.53) wrote:

James Turk interview:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/8/8_Turk_-_Fed_May_Announce_QE3_Now_Creating_Gold_Explosion.html

"One of the key themes at the GATA Conference here in London was how undervalued the gold and silver mining shares are at the present time. Sometimes you need a lot of patience Eric, but rarely do you ever go wrong when you accumulate undervalued assets and wait patiently for their potential to unfold. That is exactly where we are in the mining shares at the moment and I remain very bullish about their prospects.”

Report this comment

#4) On August 09, 2011 at 8:48 AM, MoneyWorksforMe (49.53) wrote:

Eric Sprott interview:

http://news.silverseek.com/SilverSeek/1312651988.php

"Gold was the investment of last decade and I think silver is going to be the investment of this decade. I believe silver will get back into a 16:1 ratio with gold."

Report this comment

#5) On August 10, 2011 at 10:03 AM, kdakota630 (99.92) wrote:

MoneyWorksforMe

I see Grandich mentioned you in his most recent newsletter.

Report this comment

#6) On August 10, 2011 at 10:12 AM, MoneyWorksforMe (49.53) wrote:

kdakota630,

Yea I saw that! How awesome is that!?

By the way, I have largely you to thank for introducing me to his work. I believe it was you who first posted his newsletter on your blog, and I have been periodically following him since.

Report this comment

#7) On August 10, 2011 at 10:27 AM, kdakota630 (99.92) wrote:

MoneyWorksforMe

Yeah, that was pretty cool, and I'm pretty sure I'm the one who brought him to the attention of readers here. He should be better known than he is. A friend of mine turned me onto him probably 3 years ago, and his timing is spectacular.

Report this comment

#8) On August 11, 2011 at 12:47 PM, Frankydontfailme (21.76) wrote:

Yeah I like him. Should say though, he thinks it time to start selling rallies in gold (darn margin raises)...

Based on his advice, and Sinch's (too take some profits now, but keep core position), I've started to collect some cash.

Marc Faber and Jim Rogers are also expecting a pullback... what gurus are bullish still? Sinclair I suppose, but even he believes it will be rocky from here.

Last nights email below:

Good and Not So Good News - While I feel very good about my overall approach to the markets I follow (minus mining shares lagging badly versus metals) for several years now, I know what I’m about to say is going not to sit right with some followers. I’m starting to see some early warning signals that gold may be going parabolic. While such a move is great for those of us who have been aggressively net long from near $300 an ounce, I’m concerned some sentiment indicators combined with a parabolic status could allow a major correction (or worse) to take hold that could cause a far greater disruption in the “mother” of all gold bull markets than is necessary.

For the vast majority who bought gold all the way up for the reasons many refused to believe but have now played out before our eyes, it’s quite understandable one doesn’t want to go when the going seems to finally be going good in the eyes of many now. But since those now “attractive” eyes were many of the same people who “panned” gold all the way up, I become concerned the nearly empty boat in which we rode comfortably up until now is suddenly becoming overcrowded.

My new, long-term target of $2,350 is not in question, but my gut is sensing a “half-of-loaf-is-better-than-none” approach may be worthy for some to consider. The fact that this view in itself will not only cause many to email, it’s the fact of how many emails I already have received of late from people saying my bullishness is not strong enough, the world is ending – film at 11, etc. These are factors that always arise when a move is reaching an extreme.

Long time readers know I can’t stand the “cookie-cutter, one-size -fits-all” approach because no two people are the same. However, since I’m not dispensing investment advice but rather just providing observations from someone who is approaching 30 years in and around Wall Street, I’ve tried to come up with an observation that most can at least consider for their own circumstances.

Notice overbought readings and one of my biggest concerns, the spread between current prices and the 200-Day M.A.

I’ve maintained for much of this “mother” of all gold bull market rides up to 50% exposure just to physical gold itself. That, and the ability to have sidestepped some significant corrections along the way puts me in a good position to consider the half-a-loaf approach at this point. I would use a “scale-up-sell” approach from right here to possibly another $50, $100 -$200 spike in the coming days that ends up having one own half the gold they currently have if and when we reach near $2,000. If this occurs and it keeps going, I find it quite easy to accept a full participation from $300 to now and still “half-in” until further notice. If we do get a correction somewhere in this potential spike range, I know the “hindsight” view for most will be glad I sold some (while Monday morning quarterbacks complain one should have sold more). And if we just peak now and correct from here, this would make me most happy versus spiking much higher from here.

Whether you agree or not I hope you appreciate my continuing desire to be completely candid even if it flies in the face of popular belief and/or my very business.

Report this comment

#9) On August 12, 2011 at 10:07 AM, Frankydontfailme (21.76) wrote: