RickshawETF's Investment Strategy for 2020
Let me start with a disclaimer:
I've lost more fiat in the past 8 years than you will probably earn thru investing! Seriously.
That being said, it sure affects my investing strategy:
1. Don't lose [any more] capital
2. Gain back that lost capital
In order to accomplish these goals, I agree with Sovereign's thesis that the metals are in the early stage of a bull market, and they are in a unique situation where the upside potential is so great, relative to downside risk (even with the banksters in control!), that we are in a once-in-an-investing-lifetime situation.
My strategy:
Put every cent you can afford into Tesla [TSLA]!
Just kidding . . .
I divide my capital into two categories: (1) Investing and (2) Gambling
(1) insures, hopefully, that I don't lose capital, and (2) provides leverage to try and regain the losses of the past 6 years.
(1) is all in equities -- mining stocks, some high tech and pharma , and even a retailer or two. These are all in rollover IRA's that I fully control.
(2) is my Roth IRA, where I hope to [eventually] realize strong gains that are tax-free. Here I have more miners -- mostly streaming companies, plus Kirkland Lake -- and a boatload of Call options on streamers, producers, and explorers. This is much closer to gambling than investing, as I have had shitloads of Call options expire worthless, during the PM doldrums of the past 5 or 6 years. (Thanks, AG! Keith Neumeyer is not my friend . . .)
I really feel that Call options on the miners will pay off well. I bought KL Jan 17 2020 $35 Calls on 12/19/18 for $2 each, when KL stock was at $24.04. I sold those options on 11/19/19, when KL stock was at $48.71 (it doubled) for $14.10 each -- a 7-bagger! That's leverage! I bought MUX Jan 17 2020 $0.50 Calls on 12/12/19 for $0.58 each, and sold them 18 days later for a net gain of 34.5%, when the stock went up 18% -- That's leverage!
Between November and the end of December, I rolled over all my Jan 17 2020 calls to Jan 15 2021 calls in the same miners. In most cases, I had gains that allowed me to buy more contracts on each of these miners. It is not a strategy for the faint-of-heart, but I can't imagine that producers like KL, KGC, SAND, MUX, AG, and CDE won't be a lot higher by next New Year's Eve!
As always, this is not investment advice -- just an example of what I am doing! Also, investment advice is always worth exactly what you pay for it . . .
