I began on Friday, April 8. I have 17 issues, if you count 2 mining fund ETFs, and 2 royalty firms. But the emphasis has been on actual miners, as that’s where the real action is. I presently have 13 of those. I keep in a watchlist, and chart 19 issues, as I want for my miners to be outperforming the mining funds and the actual gold and silver ETFs. Smart? It’s working, as the 2 metals ETFs come up at the very bottom of the list of issues, when I sort them by the relative strength of their price moves… and, just to be certain that this is a sound strategy, the 2 metals ETFs have remained at the very bottom of that list sort since the day I started, indicating that my manner of sorting definitely works.
In order, alphabetically by company name, not symbol, since 4/8: CDE 91%, AG 117%, HL 85%, ABX 46%, AUY 54%, RIC 51%, PAAS 45% and FSM 78%. There had been others, but each was sold at a profit so as to move the capital into another.
On 4/25, I sold HMY and bought IAG. IAG has since advanced 52%.
On 5/16, I sold AU for PVG, which has since appreciated by 36%.
On 5/26, I let AGI and NGD go in favor of AKG, which I have also just recently sold. These were all somewhat profitable, but they were quickly falling out of favor.
On 6/7, I sold EXK to acquire SSRI, a move I don’t regret for 1 second, as SSRI has lept 45% since.
Another good move was to sell SA on 6/15 to buy MUX. It has since gone on to bring 25% gain to date.
KGC began to fade, so I sold it for a profit on 6/22. I held the proceeds for a later purchase.
I found what I wanted on 7/1, when I sold AKG, and grabbed shares of ASM. It closed above my purchase price Friday, for an immediate gain… and judging by what the metals have been doing over the 3-day holiday weekend, with silver at $20.63, up $.77 and near 4% as I write… we should see a good pop in the metals share prices Tuesday morning, if this holds, or should advance even further.
Now, the question has to be asked: What’s going on? Why are the metals, especially silver, driving so hard and fast at this time? The answer, as I am finding it at this moment, is that there appears to be a true financial disaster and collapse beginning to unfold, that is not yet being reported in the mainstream media, as it would certainly precipitate a global panic. I read this in an essay that came to me over the weekend from one of the principal contributors to stockcharts.com, which showed a chart of Deutschebank in a virtual free-fall, and at a price lower than the previous global financial collapse in ’08. I’ve known of the inevitability of this event, and was warned of it as early as January/February… and, have been seeing certain signs of it up to this point, but whether it is actually beginning to unfold now, is unclear to me yet.
That being said, should it come about… we are ready for it, as not only are we buying into these metals holdings as investments, while they are launching into a very new and yet young bull market, but I have been holding some all along purely for their ‘insurance’ value and purpose to me.
As a % of our total investable assets, I am 55.5% cash, 13.15% common stock and 31.35% in precious metals in its various forms. This was as a result of selling much stock to cash, and the acquisition of some more metals than we had. We had been as little as maybe 15% in metals, but between to purchase of more, beginning Friday, April 8, and their appreciation since… metals have risen to 31% of our portfolio, and will likely become much more of it in time, as they continue to find favor the world over… as I am quite certain they will.
From the above, and without trying to calculate all of our actual gain to date, I’m certain we have experienced at least a return of 40%, and probably something closer to 50%, in less than 3 months time. This is well ahead of the moves in gold or silver themselves. The bull market is young. There are relatively few aware of it and onboard yet. It’s very likely to pick up a lot of steam and power ahead in manner that will probably generate a lot of excitement… then the volatility will begin to kick in, so as to shake people out of their positions, before they take off again. It’s going to become a wild ride. Fasten your seat-belts!
I thought an exact quote would be in order… “If Brexit does end up being the trigger for a systemic banking problem, you’ll need to evaluate your entire portfolio. Looking at the chart of Deutsche Bank, it looks a lot like a Lehman Bros. chart in the terminal phase. When the CEO has to comment ‘no need to raise cash’ and on the other hand, they are failing to meet regulatory levels, the clarity is not high.” Granted, it’s necessary to read between the lines, but the real message seems clear. Italic emphasis is mine.
And, whatever was the big driver over the 3-day weekend elsewhere, must have ‘resolved’ itself, as much of the gain that had been there has unwound. Prices have settled back to pretty much where they had closed at Friday… go figure! I never did find any true news story to explain why it had risen so hard and fast after Friday… can’t much matter now, I suppose.
As a further adjunct, shares prices are off to a very fine start Tuesday morning, and pushing further into new all-time high territory, since this market turned up 6 months ago.
Here’s to your accumulation of real wealth!
Harold F Crowell