This is not the first time you've differentiated between long term and speculative capital, and I wonder if you could clarify this (...) What is your opinion - is it correct, using your terminology to treat junior gold and silver stocks as "long-term capital?"
The answer about juniors depends on what you want to do with them. We believe that juniors should not be traded on a short-term basis and that one should treat them as long-term investments. You will find more details in our section on gold and silver portfolio structuring.
In a nutshell, short-term capital is something that you use to trade precious metals or related assets (like mining stocks) on a short-term basis (say weekly trades). Most of traders' capital is this short-term capital. Long-term investment capital is something that you can invest and then hold to this position for years and in the end you are very likely to make money. For instance, if someone had bought silver in 2002 and holds it to this day (or they moved out of and then back into silver no more than - say 15 times - during the past 10 years), then this is the long-term capital. We believe that some of one's capital should be dedicated to long-term investments and some of it to short-term trades. You will find more details in our essay on gold trading vs. investment.
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