The Gold Bugs Index, the HUI, remains under pressure as it stands at 113.89, having tested the '100' level no less than 5 times in recent months. The summer doldrums continue with the precious metals sector struggling to catch a rally or make a meaningful move north, but are things about to change? The precious metals sector has been battered over the last 4 years or so and most of the producers have now lost 82% of their value since the heady days of trading at 630. Despite all their efforts in terms of cost cutting etc, some are still trading at a loss and their cash burn is becoming an impediment to their very survival. Take great care with your choices as it is possible that a number of bankruptcies could be upon us, if and when gold prices dip below that $1000/oz level.
We remain largely with the US Dollar which has outperformed gold over the last 2/3 years and is now challenging the '100' level as other currencies lose ground. We are overweight in dollars at the moment and are happy to be that way in readiness for the upcoming bull run in this sector of the market.
The time is drawing close for when we will move on this sector with the application of an aggressive acquisition programme and so we will be writing a little less than we normally do, as the need for doing the due diligence at this time is critical. Our focus must now, more than ever, be concentrated on the selection of the stocks that will make up the foundation stones for profitability in the next golden bull market.
Our Watch List is being pruned as we wish to concentrate on no more that a dozen or so stocks in the gold and silver space.
To give you a heads up; our subscription fee is also under review at the moment and may well be increased in the not too distant future. This price increase does not apply to those who are already subscribers as their subscription will not be increased.
If you would like to join us at this very interesting juncture then we would be delighted to have you on board for what we believe is going to be an exciting period of history in the precious metals market.
The following is a gentle reminder of some of the previous points that we have made regarding the 'Stock Trader' service:
We issue our subscribers a trading signal via email as soon as we open or close a trade. Every trade will be published once we have closed it and not before.
We ask that you go gently with every trade and we usually allocate about 5% to 10% of our funds to each trade.
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We are not financial advisers and do not give financial advice, only access to what we do in terms of trading via a report which usually goes out on a weekly basis and a trading signal everytime we place a trade.
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