The name of our website says it all: Natural Resource Stocks. We love gold and have been invested in this metal and its associated assets for a long time. You can love your investments or believe in them, but you cannot get married to them, no matter what. Objectivity is one of the most important aspects of trading and investments. Our clients and we have benefited handsomely from the rise in precious metals. But if you look at the chart of Gold, you don’t have to be a financial guru to realize that Gold is severely overbought.
While we DO NOT think this is the end of the bull market in gold, numerous indicators are at levels that usually produce intermediate-term corrections or consolidations lasting weeks or months. We will keep our core positions, but it’s time to trim them a bit and hedge them a little. Greed is good, but blind faith is not. Let’s have a sober approach and not get too excited.
Dennis
