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
in the middle of f'n nowhere, SE Asia
Joined: Jun 24, 2011

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 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
Joined: Jun 14, 2011

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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