Investors, why do you ask for a hot gold stock ?

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#1 Fri, Jun 24, 2011 - 5:13am
gold bug-ger since 2001
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in the middle of f'n nowhere, SE Asia
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Investors, why do you ask for a hot gold stock ?

This post is for investors not gamblers.

I have read a number of posts of those who are looking for a hot gold stock. Why? There are so many to choose from so I have taken a different approach. At the time I wish to increase my exposure to gold stocks I buy Sprott Precious Metals Fund (SPR003). For those that prefer a similar but American fund, then why not go with Tocqueville Gold Fund (TGLDX). John Embry (Sprott) and John Hathaway (Tocqueville) know a lot more about mining companies than 99% of the people posting on internet web boards. Why not invest with the pros?

Now for the million dollar question. When is the best time to buy? A month ago I was going with the seasonality story. We get screwed in the summer so I decreased my position for May and June. I put a big circle on August 25th as my big buy date. Was that the right thing to do? I don't have a clue. When John Embry, Jim Sinclair and James Turk say the big move may start this summer then I have to pay attention. I have split my funds into 3 thirds. One third to go back in on this Monday. One third on July 26th and the final third on August 25th. This way I have it figured to get at least a third at the bottom whether it is now, next month or in August (the seasonal low).

Why these dates you ask? Jesse at https://www.jessescrossroadscafe.blogspot.com/ has followed the options expiry date. Amazingly it usually catches the low for many months.

The thing I know for sure -- gold stocks will be much, much higher by Christmas. Therefore, invest in a fund and turn off the computer and don't worry about it.

Edited by: gold bug-ger si... on Nov 8, 2014 - 5:31am
Sat, Jun 25, 2011 - 12:14pm
Eric Original
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That's pretty good advice

I still like getting involved in the "story" aspect of individual miners though. But these days I pretty much stick with more established producing companies. I'll leave the lottery ticket stuff to others. Doesn't interest me anymore. Each one is too much of a burning match for my tastes. By the time a stock is considered "hot", it's already too late to buy.

This isn't a metals blog anymore. It's a right wing circle jerk, masquerading as a metals blog.
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