Spot Bullion fell within $2 of a $890 technical support floor yesterday. It sure would be nice to see this turn around. My portfolio is now down 17.4% from its Feb 5 benchmark while gold futures are only off 2%.
Iamgold announced a prospectus issue of 34.3M shares @ $8.75. This was poor micro-timing I think since the general gold related market was very soft. My two silver holdings resisted the gold share sell off.
For the ascendancy theory of gold to be valid, we have to reach a turning point in the market valuation before too long (I would think well before spot gold goes back to $750/oz). We should be able to see spot gold and related mining stocks rising, even when (or especially when) the general market advances since the advancement in the general market valuation foretells the advancement of inflation. We need to see evidence of a shift in gold buyer psychology from "safe haven" to "inflation protection". I'm not sure what will trigger this.
Meanwhile it is difficult and costly to be patient.
Subscribe to:
Post Comments (Atom)
One day later, look at the change! Gold is up $20. Made some money in a related mining stock yesterday, but then it looked like the gold run-up was over for awhile.
ReplyDeleteIn markets like these, I don't count profits unless the position is closed.