Last October, among the various statements by Hugh Hendry at the annual Buttonwood gathering was this blurb by the man who is otherwise a big fan of physical gold: "I am long gold and I am short gold mining equities. There is no rationale for owning gold mining equities. It is as close as you get to insanity.
The risk premium goes up
It’s our third consecutive win in the early months of 2013, and this time we made a profit of 53.33% in just 7 days! We believed that gold and silver would both continue to fall significantly, and that Coeur d’Alene would be vulnerable to such a fall.
This is in stark contrast to many other newsletters that have been recommending to buy gold and silver stocks.
Therefore we signalled to our subscribers to “buy CDE Sep 21 '13 $20 Puts at $1.50 with 5% of our capital allocated” on February 12th; we believed that these puts in particular offered attractive risk reward dynamics.
Over the next 7 days
My message lately has been very simple: buy low.
And do it now.
The essential formula for investing, as you know, is to buy low and sell high. So easy to say, so hard to do.
It takes real mettle to be a successful contrarian, and it's precisely because so many investors are so nervous about our market today that it's a buyer's market.
Let me digress for a crucial, relevant sliver of history.
It was literally a deal done in the dead of night:
The Cross of Death is now unavoidable for gold prices as the 50dma is set to cross over the 200dma in a downward swing. The chart below shows that there was considerable damage done to gold following the last cross of death with gold prices dipping to the $1550/oz level. However this was short lived as gold recovered and managed to form a golden cross as the 50dma crossed over the 200dma in an upward swing. So it’s a crisscross situation that we find ourselves in as nervous investors, swing traders, speculators and fund managers go with the trend of day and trade accordingly.
The sell-off of both gold and silver has had a dramatic effect
First up, some admin; when you subscribe please ensure that you have bob@gold-prices.biz added to your safe sender list, and that your emails are not being blocked by a spam filter. Otherwise we have no way of contacting you and our emails to you get bounced back to us.
This is an article that we received today from GoldSilverWorlds which we hope you find interesting:
We often make a distinction between buyers of physical precious metals, [PMs] and buyers of futures, exhorting the former to buy with impunity, and some may see that as cavalier, given how the price for both gold and silver have been in recent decline.
The point for buyers of PMs is for both protection and creation of wealth. Protection against insidious central bankers destroying currency-purchasing power, over time, and wealth creation as evidenced by those buying PMs over the past decade and seeing the intrinsic value grow dramatically.
Buyers of the physical are less price sensitive and view current declines as opportunity to add more. As an example,
Jim SinclairWhen the going gets tough the tough get going; as they say and this is Jim Sinclair spelling it out for us this morning.
The following is a missive that we received from Jim Sinclair who is the host of a web site called Jim Sinclair's MineSet. The above link will take to his site and his updates via email are free, so you have nothing to lose by signing up for them.
Here we go:
My Dear Extended Family,
Please do not be hoodwinked by these demonic sociopath bankster gold banks that,
The printing of more paper money usually has the effect of debasing or diluting the strength of that particular currency. The lowering of interest rates also renders a currency less attractive to investors as better returns might be available elsewhere. The demise of the US Dollar can be attributed, in part, to both of the above reasons. However, when this debasement is plotted against other currencies as per the US Dollar Index we can see that it is having some difficulty when it comes to heading lower as the chart below depicts.
The reasons for this is that the US Dollar Index
Jim Sinclair
The following is a missive that we received from Jim Sinclair who is the host of a web site called Jim Sinclair's MineSet. The above link will take to his site and his updates via email are free, so you have nothing to lose by signing up for them.
Here we go:
My Dear Extended Family,
The pressure on gold is not permanent in any sense. This decline is,
We often hear the claim that gold producers have not met investors' expectations for the past couple years. While there are many potential reasons for this, one explanation for their underperformance lies in the fact that producers diluted their share structures, leaving shareholders with smaller gains than they would have otherwise harvested.
To show how this dilution has impacted the industry, let's first review how gold miners performed last year compared to the S&P 500.
The chart is hardly a surprise: the precious-metals producers had a poor showing, losing 26.6% in 2012 – something we think will reverse this year
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
Thursday, February 21, 2013 at 09:16PM