A nasty start to the day with a savage correction starting in Hong Kong, then London and now a follow through in New York. After a 100 point run up on the HUI a correction of some sort was due and now it has arrived.

We have a core position in precious metals mining stocks, which we are holding for the long term. However we did take some money off the table recently as explained in our article ‘Is the HUI about to correct’ which we posted on the 27th September 2007. The cash generated will be re-invested as soon as we think that this pull back is over. This type of trade is a dangerous thing to do in a bull market as the biggest mistake we can make is being out of it and left behind at the station, hence the retention of a core position.

We don’t know how far this correction will take us but we will be monitoring it on a daily basis and will post as soon as we are ready to start buying stocks again.

Corrections are healthy so we now need to keep calm and not be pressured into selling our quality gold and silver stocks at this stage. It is a time for patience, which we are not good at, in order that we can identify a suitable re-entry point.

Stay cool.