QBAMCO declares "It's time"

Adam Taggart
By Adam Taggart on Thu, Dec 13, 2012 - 1:09am

Friend of the site Paul Brodsky goes 'all in' on gold. His fund is positioned 83% on the long side - 90% of that is in precious metal investments, levered 1.4x.

Paul states:  "Our exposure to precious metals has never been higher or more concentrated"

Qbamco - It's Time

2 Comments

Doug's picture
Doug
Status: Diamond Member (Offline)
Joined: Oct 1 2008
Posts: 3159
Interesting timing

Thanks for the report Adam.  The timing seems more than coincidental with the take down of PM prices overnight attributed to Asian sellers.

http://www.kitco.com/reports/KitcoNews20121213JW_am.html

Quote:

 Once again, the gold market suffered a rapid and inexplicable price drop in early Asian trading Thursday, on reported sell stops being triggered. Sell stops are pre-placed market orders to sell if a certain price is hit. That marks the third week in a row of such price declines that occur for seemingly no fundamental reason. The market place is still digesting the outcome of the U.S. Federal Reserve FOMC meeting that ended Wednesday afternoon. February gold last traded down $23.40 an ounce at $1,694.50. Spot gold was last quoted down $18.10 at $1,694.00. March Comex silver last traded down $0.967 at $32.82 an ounce.

Early on in the day PMs appear to be recovering nicely.

Doug

 

 

Oliveoilguy's picture
Oliveoilguy
Status: Platinum Member (Offline)
Joined: Jun 29 2012
Posts: 578
Strategy for PM Investing

The best strategy is to buy and hold in the PM space. You must believe in your assumption that Gold and Silver will be more valuable relative to your currency in the long run. If you are not in, look for entry points at the bottom of the current trading range.  Buy in in 1/3 's. Never go "all in" at once.

Figure out a % of your portfolio that you are comfortable with. For me it is 20%. 

Stay away from GLD and SLV. Use CEF or Sprott funds for bullion and dividend paying miners for your equity exposure. (This is above and beyond the physical metal that you have at home.)

The markets are now completely manipulated on a short term basis, so it seems suicidal to try to trade against the big guys.

The nice part about investing this way is that you can invest most of your time in building your own homestead, and not be stuck in front of a computer for hours each day.

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