Gold Hits All Time Highs..How I'm Trading The Next Leg
Submitted by QTR's Fringe Finance
If you read my blog, I’m sure you’ve already heard that gold has hit new all-time highs tonight. This, as I often joke, means that every single person who has ever recommended gold to go up in the history of forever—in nominal U.S. dollar terms—has been proven right as of this second.
Of course, I’m being a little bit hyperbolic, but what fun would it be to have a great year and crush the gold-and-silver miner trade if we can’t joke about it?
Over the weekend, I had two conversations that made me think about how I could modify my gold trade going forward. It feels like we’re at the beginning of a serious realization by global investors that the precious metals are officially in a bull market.
I’d even say we’re in the very early stages of it becoming a consensus trade—though I still think there’s significant runway left, as I discussed with Peter Schiff in my interview with him on Saturday.
On Tuesday, I plan to make a couple of moves in gold and silver that I hope will capture some additional upside as the bull market continues and potentially becomes a more mainstream story if prices hold these levels.
The first thing I’m considering
I’m thinking about adding some additional exposure to silver miners. If you look at the cup-and-handle formation forming in silver right now, it looks almost exactly like gold did a year or two ago before its breakout.
This was gold back when it was $2,100 — barely a year and a half ago. It’s up more than 50% since then.
If the technicals follow through on silver, it’s easy to make a case for silver hitting $80 relatively soon, just based on the chart.
As always, technical analysis is backward-looking—but it has a way of becoming a self-fulfilling prophecy the more people pay attention to it.
I also spoke with my good friend Larry Lepard today. We talked about how to capture some profits and possibly reposition slightly for the next leg higher. Larry suggested First Majestic Silver (AG), which another person on my Twitter spaces also suggested to me last night, which he thinks hasn’t moved enough relative to other silver miners.
My subscribers know I own SIL and Pan American Silver (PAAS) —now both near 10 year highs—but First Majestic hasn’t moved nearly as much. It could be a position I nibble on when the market opens Tuesday.
Another idea
When I spoke with Peter Schiff on Saturday, he mentioned that his fund was loaded with...(READ THIS FULL ARTICLE HERE).
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