Investing

Gold/silver and miners...time to buy?

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  • Nov 2nd, 2020 9:15 am
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Sr. Member
User avatar
Oct 19, 2014
792 posts
97 upvotes
Waterloo, ON
What are your thoughts about First Majestic Silver Corp.? Thinking of picking up some shares here for a long term hold. Down over 50%+ from the august highs.
[OP]
Member
Dec 13, 2014
375 posts
129 upvotes
Hampstead, QC
sold the remainder of my miners today including FR...Overall I sold 1/2 in summer and half yday and today...Banked 120% on the miner trade which was 80% of my portfolio...This bull market in gold and metals is likely just a micro bull market and IMO profits should be taken.
[OP]
Member
Dec 13, 2014
375 posts
129 upvotes
Hampstead, QC
Took the plunge back in the past few days with some ammo left for tomorrow. I decided to take advantage of tax loss sellers.
Took a large position of FR ( 6.85 usd, cost ) CDE cost of 8.95 usd and SSRI at 8.00 USD. These are big positions. I could be early and get smoked but disagree with the herd that the bull run for gold and miners is over. I put money where it counts.
Deal Addict
May 28, 2006
2389 posts
181 upvotes
I'm holding 7000 shares of HGU. Don't see much downside risk unless it somehow gets in the 900s. I think USD is oversold. Goooooooooooo gold!
Jr. Member
Nov 7, 2015
162 posts
19 upvotes
Vancouver, BC
A message to the believers of JEHOVAH OF ARMIES, blessed be his mighty name.

A financial flood is near, I prayed for it not to be in the winter.. a currency switch from unbeliever to believer.

Your fiat currency will only be worth the paper it's printed on in the not too distant future, a mixture of inflation and deflation will rock the economy and fiat system around the world.



Silver bullion will be our Ark in this flood, for as the price is manipulated to exhaustion, now is the time for an explosion.



My God revealed this all to me, and to reveal it to those whom he loves, now spread it to the ones whom you love.
Newbie
Nov 17, 2011
28 posts
5 upvotes
Psycho44 wrote: I'm holding 7000 shares of HGU. Don't see much downside risk unless it somehow gets in the 900s. I think USD is oversold. Goooooooooooo gold!
I hope you know the risks of these leveraged ETFs. The ETFs rebalance daily so it only makes sense to invest in these if you believe gold will go up within weeks.

Even if gold stays at the same price, you will be at a lost in the long run.
Jr. Member
Jul 29, 2010
144 posts
28 upvotes
ottawa
benji888 wrote: I hope you know the risks of these leveraged ETFs. The ETFs rebalance daily so it only makes sense to invest in these if you believe gold will go up within weeks.

Even if gold stays at the same price, you will be at a lost in the long run.
upvoted. they say the fund seeks to track the daily movement of gold. so if it goes up by $10% in a week, holding HGU for a week may not yield 10%. i found this out earlier this year but also learned ABX and other miners are a better proxy for gold.
Deal Addict
May 28, 2006
2389 posts
181 upvotes
johndenver wrote: upvoted. they say the fund seeks to track the daily movement of gold. so if it goes up by $10% in a week, holding HGU for a week may not yield 10%. i found this out earlier this year but also learned ABX and other miners are a better proxy for gold.
"Horizons HGU seeks daily investment results, before fees, expenses, distributions, brokerage commissions and other transaction costs, that endeavour to correspond to two times (200%) the daily performance of the S&P/TSX Global Gold Index™. The Index consists of securities of global gold sector issuers listed on the TSX, NYSE, NASDAQ and AMEX."

Quoted directly from the Horizon's website on HGU. HGU does not directly correlate to gold price unlike HOU which follows WTI oil price on the Nymex. Like today gold is down $2.15 but HGU is up $0.16 or 1.31%.

I've made about $50k from HGU and about $20k from HGD so far this year. I trade both simultaneously and don't really care about the decay.

But yeah I wouldn't recommend these leveraged ETF's if you don't know what you're doing.
Jr. Member
Jul 29, 2010
144 posts
28 upvotes
ottawa
Psycho44 wrote: "Horizons HGU seeks daily investment results, before fees, expenses, distributions, brokerage commissions and other transaction costs, that endeavour to correspond to two times (200%) the daily performance of the S&P/TSX Global Gold Index™. The Index consists of securities of global gold sector issuers listed on the TSX, NYSE, NASDAQ and AMEX."

Quoted directly from the Horizon's website on HGU. HGU does not directly correlate to gold price unlike HOU which follows WTI oil price on the Nymex. Like today gold is down $2.15 but HGU is up $0.16 or 1.31%.

I've made about $50k from HGU and about $20k from HGD so far this year. I trade both simultaneously and don't really care about the decay.

But yeah I wouldn't recommend these leveraged ETF's if you don't know what you're doing.
your success is encouraging but i've seen some of horizon's products do unexpected splits and merges. there seems to have been on on may 30 this year with HGU. did you hold it at that time, and if so, how did it affect you?
Deal Addict
May 28, 2006
2389 posts
181 upvotes
johndenver wrote: your success is encouraging but i've seen some of horizon's products do unexpected splits and merges. there seems to have been on on may 30 this year with HGU. did you hold it at that time, and if so, how did it affect you?
May 30 gold bottomed out to $1205 and was the start of the bull run to end of June topping out at $1320. Can't remember how I did with that stock split. Just more work accounting for it in Quicken.

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[OP]
Member
Dec 13, 2014
375 posts
129 upvotes
Hampstead, QC
Virdent...you have been reading too many gold bug newsletters. In your scenario, silver coins wont save you, only guns, ammo and food. Merry Christmas.
Last day for tax loss selling is tomorrow, so I will be a buyer of the 3 names I wrote about tomorrow.
Jr. Member
Jul 29, 2010
144 posts
28 upvotes
ottawa
thanks for the details Psycho44. so you bought both up and down to hedge which adds another dimension. i feel like there's some more to your strategy and consideration on your methods. mind elaborating a on how you decide to buy and sell the hedged position?
Newbie
Aug 16, 2016
71 posts
50 upvotes
KIRKLAND LAKE GOLD LTD TSE:KL
and
Klondex Mines Ltd TSE:KDX

In both of these now since after Christmas. My only personal 2 choices (which doesn't mean much, still beginner investor) I just don't like most other companies since expenses/debt and low ROI is crazy. Don't understand why people support Barrick Gold.
Also only wanted Canada/australia/Mexico mines.

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