Things change very quickly in the precious metals market lately and these are tough times for all, who hold positions in the precious metals and related equities. In the previous several weeks PM stocks (as measured by the HUI Index) have fallen by 25%. This has been one of the most dramatic downswings in the history of this bull market up to date. Fear has reached extreme levels, which made us alert to possible signs of a sharp recovery.
The reason we are sending you this message is that we think that we have just witnessed such signs and have reached levels that might stop this decline. Today's low of 355 on the HUI touched several important support lines and we believe that this fall's days are numbered. That is, if we have not bottomed today, which is probable. Since this downleg is so dramatic, we think that the odds are that the upswing will also be quick.
Summing up, we believe that it may prove profitable to purchase the long-term PM-related holdings now, and also to use the speculative capital to bet on a rebound in the PM stocks. Today we have purchased short-term call options on GDX, strike 40, which serve as a leveraged proxy for the sector.
We will soon be posting a commentary, in which we will present charts to support the abovementioned opinions. However, preparing an essay takes time and we wanted to inform our registered Users about our view on the market situation right away, before we make it available publicly. This way you can take it into account when making your investment- and/or speculation-related decisions and perhaps enter the market before other investors / speculators.
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The reason we are sending you this message is that we think that we have just witnessed such signs and have reached levels that might stop this decline. Today's low of 355 on the HUI touched several important support lines and we believe that this fall's days are numbered. That is, if we have not bottomed today, which is probable. Since this downleg is so dramatic, we think that the odds are that the upswing will also be quick.
Summing up, we believe that it may prove profitable to purchase the long-term PM-related holdings now, and also to use the speculative capital to bet on a rebound in the PM stocks. Today we have purchased short-term call options on GDX, strike 40, which serve as a leveraged proxy for the sector.
We will soon be posting a commentary, in which we will present charts to support the abovementioned opinions. However, preparing an essay takes time and we wanted to inform our registered Users about our view on the market situation right away, before we make it available publicly. This way you can take it into account when making your investment- and/or speculation-related decisions and perhaps enter the market before other investors / speculators.
