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« Agnico-Eagle Mines Ltd and the Golden Cross! | Main | Gold and Silver Investment Summit: London 2008 »
Thursday
Aug142008

Fantastic Buying Opportunity, Bought AEM Calls


We bought JAN 17, 2009 $ 60.000 CALL OPTIONS on AEM (Agnico Eagle Mines) today at $5.50, and we our hereby signalling a BUY on these contracts.

The options started trading at $5.20 and shot up to $5.70, before falling back to around $5.00 at the moment. This shows just how volatile the derivatives market can be and therefore one must be prepared for this before trading in options.

Gold is currently trading at $809, which we think will be looked back at as a rock bottom bargain price, so now is the time to load up on gold, gold stock and, if you are confident and have the expertise, perhaps a range of options.

If you haven’t done so already, BUY!


And for those that have, sit tight and hold onto those positions, as we think that this is the bottom in gold and the downside from now on is very much limited.

These are fast changing times and its essential that you stay up to date with what is going on in the market. For our latest commentary and trading signals on gold, click here to subscribe to The FREE Gold Prices Newsletter and click here for The FREE Silver Prices Newsletter.

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Reader Comments (10)

Hope your right. As my positions and options from thr first buy a month ago in yamanna and KInross is down 70 percent. Not to mention the stocks. The dollar is rising and oil is going down. I don't see how gold will rally in this enviornment. Im very concerned.

August 15, 2008 | Unregistered CommenterGary

I agree with Gary. If the dollar is on the up and oil is going down it could be 10 years before gold reaches $809 again. Now a pork belly - now there's a thing.

August 15, 2008 | Unregistered CommenterFrank

With the weakness in all other currencies, being caused by oil, and hence inflation, the American dollar looking strong in comparison....where do we go from here? There isn't an analyst out there who can give an unbiased, honest, objective response. Is there? I'd sure like his(her) e-mail address.
Del

August 15, 2008 | Unregistered CommenterDel Funk

I also picked up KGC & AUY options. I used the newsletter suggestion to submit the sell order at my desired profit point. As it turned out, I lowered my price and exited my metal options at + 70%. I could have made more but was very pleased at my exit point.

Did you have a sell plan and stick to it? If not, the metal options change very fast. My suggestion is to settle on your sell plan before you buy - especially for metal options.

August 15, 2008 | Unregistered CommenterBC

So Gold Prices Newsletter thought $809 was a "rock bottom price"? Hmmm.... I'm holding all my positions, but not buying despite the incredibly low prices--because if they exist, they are not incredible, but credible and very possibly announcing still lower prices to come.

A low of $730 continues to seem plausible to me. And what does that mean, in 1980 or even 2007 dollars????

We can only pray that the autumn brings far higher POGs, albeit far below the 1980 peak in inflation-adjusted terms. Nobody ever seems to recongnize--on lemetropolecafe.com or here--that the 1980 peak was an abarration, not a benchmark.

Gold Prices Newsletter editors are to be admired for their optimism. One HUGE problem: they speculate in options, which is NOT a reasonable option for the vast majority of us small investors--and Gold Prices Newsletter reader. PLEASE, Gold Prices Newsletter editors, give us fewer tips re options, and more on straight PM and PM stock investing, especially long (if that's not an oxymoron). Neil

August 15, 2008 | Unregistered CommenterNeil Bishop

I thought $854 was a screaming buy? What's next - $787 now the screaming buy? But hey, keep calling the bottom and someday you'll be right.

Advocating loading up on gold and gold stocks for baseless reasons are bad enough. But recommending options are something else. You could really lose your shirt. Although, I haven't done badly with puts on GFI a while back.

August 15, 2008 | Unregistered CommenterPaul

Gary,

In our opinion the greenback is overbought and will cool off a bit, taking some of the downward pressure off gold. We appreciate and share your concerns, as we hold similar positions.

Frank,

Well in that case we’ll have to change our name to porkbelly-prices.biz!

Del Funk,

The USD will look better compared to other paper currencies if the Fed raises rates and/or other central banks lower their rates.
Remember that the effect of changes in interests rates can take 12 months to be seen in inflation data such as the CPI. Therefore these 2% rates will cause inflation to becoming a serious issue in the US in the next 12 months.

However no matter how one paper currency may look against another, gold is the ultimate currency and it looks better than them all. This is our honest opinion, hence why we have been using our cash to buy positions in gold.

BC,

We think that an exit is essential for any investment. For these option trades, our exit strategy is to sell when the position shows 100% profit.
Even if you don’t take your profits at the exact top, the main thing is that you have

Neil,

Thank you for the feedback regarding options trading. We will take this into account when giving future trading signals.
We still maintain a portfolio of gold stocks which we think are great buys at the moment.

Thanks for your comment Neil. As always a much appreciated quality contribution.

Paul,

We must call the shots as we see them, and we do not claim to be able to pick the bottoms and tops in gold perfectly, but by taking profits close to the tops, and buying close to the bottoms we should do well.

Suggesting that we recommend gold and stocks for “baseless reasons” is something we strongly revoke. Please read our articles, all of them are available on this website, where we have listed the reasons behind why we are bullish on gold on multiple occasions. We also stated that options trading is not for every investor, only those with suitable knowledge, understanding and risk tolerance.
Please read what we have written previous before making such accusations.

August 17, 2008 | Unregistered CommenterGold Prices

It's interesting that the majority of Canadian anaylsts are extremely bullish on gold and the majority of US analysts are extremely bearish on gold at least in the short term. What gives?? Are Canadian analysts so biased because the Canadian market is so geared to resources? If oil settles in around $110 and the US dollar appreciates about 5%, what will the result be in the price of gold in the short term, long term??
I would appreciate any comments.
Greg

August 19, 2008 | Unregistered CommenterGreg

Well, this is what happened to gold starting with its $200 peak in December 1974. Over the next 19 months, the price worked its way lower. Indeed, in August 1976, gold touched the $100 level – meaning it had lost 50% of its prior bull market move.

Of course, at the time, no one was certain this would be the absolute low – that no future price would ever get so low.

And – crucially – it wasn't until well into 1978 that gold surpassed its previous record high of $200.

So think about that. Someone who jumped on the gold bandwagon at the end of 1974 had to wait over three years to stop losing money. And that's assuming they waited. I'm sure many threw in the towel long before those three years passed.

August 24, 2008 | Unregistered Commenterjk

now lets see wat is going to happens with us...........................

August 24, 2008 | Unregistered Commenterjk

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