Investing

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

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  • Oct 11th, 2020 8:13 am
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Deal Addict
Dec 3, 2014
1907 posts
1084 upvotes
Ontario
GLD is quietly surging. Smart money getting in ahead of the curve?
Deal Addict
Jul 8, 2005
1837 posts
693 upvotes
Gold ETFs are up and leveraged ETFs are up quite a bit. Would it be foolish to buy against the trend?

HGU (Horizon 2x Gold Miner Bull ETF) is up %10.63, will it continue tomorrow?
HGD (Horizon 2x Gold Miner Bear ETF)is down about the same amount . . .if ETFs lose tomorrow this could make some money but it is very risky isn't it?

Direxion NUGT (3x bull) and DUST (3x Bear) are more leveraged and are + and - about 17% right now . . . I don't have any USD though so I am going to stick to Canadian stocks for now.

What do you guys think?
Deal Fanatic
User avatar
Jun 11, 2001
8700 posts
890 upvotes
I hold some ABX and DNA, doing very well... not sure what the surge is about, LOL. SLW (silver) up quite a bit too.
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Deal Addict
Jul 8, 2005
1837 posts
693 upvotes
Volume for NUGT (Bull 3x) is 8x of DUST (Bear 3x) in the US.
Volume for HGD (Bear 2x) is ~2x of HGU (Bull 2x) here in Canada. HGD is way above regular volume as well.

Who is correct?
[OP]
Member
Dec 13, 2014
375 posts
129 upvotes
Hampstead, QC
leflower wrote: 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.
Up pretty massively on these positions bought over the last 3 tax loss selling days...very large positions...I did sell some covered calls in FR and CDE today...i think we come back off at least 5% likely 10% from these levels very shortly...lets see what the FOMO crowd does next few days.
Deal Addict
Jul 8, 2005
1837 posts
693 upvotes
Leflower: do you think I pulled the trigger on HGD too early? I was thinking it is going to bounce back tomorrow but there is no way to know, of course. HGU could go up another 12.5 percent tomorrow which would mean HGD would go down 12.5% . . .I am considering putting in a limit order to prevent excessive losses . . .is this prudent or panicky?
[OP]
Member
Dec 13, 2014
375 posts
129 upvotes
Hampstead, QC
fem...I cannot possibly answer which way a ultra etf will move in a very short time span...IMO, these etf's are value destructive unless you are a day trader and really disciplined.
Your HGD could be up or down 15% in the next few days or week.
Deal Addict
Jul 8, 2005
1837 posts
693 upvotes
What doesn't make sense to me is what I posted above:

"Volume for NUGT (Bull 3x) is 8x of DUST (Bear 3x) in the US.
Volume for HGD (Bear 2x) is ~2x of HGU (Bull 2x) here in Canada. HGD is way above regular volume as well.

Who is correct?"
Sr. Member
Dec 31, 2015
711 posts
166 upvotes
Been looking at FR for months now waiting for a good entry. I didn't think it would increase this early in the year!
[OP]
Member
Dec 13, 2014
375 posts
129 upvotes
Hampstead, QC
leflower wrote: Up pretty massively on these positions bought over the last 3 tax loss selling days...very large positions...I did sell some covered calls in FR and CDE today...i think we come back off at least 5% likely 10% from these levels very shortly...lets see what the FOMO crowd does next few days.
So far in 2017 my paper pains on the positions I took on last tax loss selling days:
FR; bought at 9.90 vg, 12.97 32%
SSO: bought at 10.97 avg, 14.36 31%
CDE : bought at 8.90 us , 11.69 31%
collected the premium on the covered calls in Jan for additional 5%

will be selling my CDE shortly as worried that Mexico may retaliate vs Trump and buying more SSO
Added to my RY short which is 25% of portfolio now vs 75% miners

I see Aug 2016 highs being broken this year in miners
I see RY below 80 this year.

GL
[OP]
Member
Dec 13, 2014
375 posts
129 upvotes
Hampstead, QC
miners on fire again today
FR + 8%
SSO +7%

swapped out of CDE into SSO today due to Trump concerns...CDE and any US miner in Mexico may eventually get hit...Phenomenal year so far in these names.
Member
User avatar
Jul 11, 2015
274 posts
112 upvotes
Victoria, BC
time to bring this baby back. As far as gold is concerned, is this year gonna be a repeat of last? seems to be doing pretty damn well these last two weeks,

just as i decided to hit the HGD....... i think its time to get back on the HGU soon though.

http://business.financialpost.com/news/ ... s-outlooks


i love how appropriately gold and tanned the CEO of goldcorp is :P
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