A lot of you old-timers have obviously gotten really ahead past few years prob 6 figures, I just don't quite understand your strategy in staying long, since you could have been adding big bucks being in and out---is it the fact that you are so far ahead that you would just rather hold and wait? even though you have to losing thousands a day now? this is an honest question---not trying to be biased in any way.
Greetings goldbeking...expect that you will get alot of strategies here so will only offer mine...have on each and every strong run up sold as much as 10%...held the dry powder for pullbacks...timing hasn't been perfect but overall think it accelerated gains and by always having a little off the table locked profit...have of late took a hit on holdings like all others and for the shares still held will CONTINUE to hold...think there is much impatience over this correction...a fear of sorts that it is NOT a correction but that the bull is dead...splat on the pavement being run over by Goldman's dumptruck....so back and forth as we stay "pinned down" there is much uncertainty...my strategic thinking here is that we are being "played" which as retail investors is easy to do...we "herd" when lightning strikes and run willy nilly even over the cliff in our panic....so...have laid siege to the castle and won't budge...now if correct this IS a correction and it is full of chop as the market seeks direction...up down up down but basically holding in the VERY ranges that our many gold analysts predicted...as low as 580 with general consensus in the low 600's which looking at the BIG PICTURE chart is quite reasonable...the stocks are IMHO way oversold and we are being buffeted by funds who have NOT one clue IMHO why gold is moving...they continue to PIN GOLDS MOVE TO A WEAK DOLLAR...because gold is priced in dollars...they are not looking at fundamentals which is to the undueing of our mining stocks...they WILL IMHO figure it out (some already have) and as they do will begin buying back these shares IMHO in a frenzy...so...will wait them out and really don't expect to wait very long...regards, groucho
Groucho, thanks a million for your in-depth response and insights---got several especially from the people I respect the most--and most saying pretty much the same thing in different ways--have been on the sidelines for about a month, waiting to get back in--but damn it, I lost my crystal ball.
All those nice little tradeable peaks and valleys are easy to see in hindsight but much harder to pull the trigger on ST trades than it seems, when one is a LT bull. There must have been 10 different times when I was thinking of selling some shares of GG, or just writing some covered calls to cushion the expected downside, only to see the price of GG steadily climb farther than anyone thought possible in such a short period of time. I may have booked some gains (and paid taxes on those gains) but might be sitting here with half or fewer of the shares I have today- OR NONE!
And if/when the price of gold has set new highs that most people wouldn't have dreamed possible 5 years ago, two years ago, or even today, I'll be selling those shares gradually and finally cashing out on the superbull market in commodities.
Does it hurt to sit and wait out the dips? Of course. We longs have endured immense pain in mid '02 (nearly a 50% haircut), early '03 (a 30% whack), and the big cahuna- late '03 to early '04 (a 45% drop and a 21-month wait until we made new highs in GG). This correction may be worse than any of those, or it may be over tomorrow, but until the Fed stops printing dollars as fast as the presses can run, the price of gold can only go up over the long term. That's my story and I'm sticking with it.
*sitting down next to Jesse Livermore with my hands pinned tightly under my butt*
Best of luck to all,
After GG settles down this long-time gold bull will add more.
Stand back and watch the fed, bigbanks, prointernationalcapital insiders,
the imf, bernacke, bush and all the rest of them pull each other's puds for a few more months.
But this financial house of cards is starting to unravel and not much anyone can now do to stop it.
you got that right...
the last real economic slowdown of consequence was way too long ago and this levitation act that's been going on since 911 has just about run it's course.
When the tax receipts start to dry up the rats are going to scurry bigtime!
Printing more money is just stoking the inflation fire...and they are doing it at an obscene rate.
When the dam breaks it's going to be historic!
You hit the nail on the head. I found that I've got so many miners and accounts that I can't even trade them fast enough now to make a good trade. This is so volatile that I feel now that "the sitting is the hardest part", to take a quote from Livermore. Yeah, it's painful but having returned to the golds about 4 years ago I've been through some reactions before and use them to add to my positions. I'll sell when they're much higher. I blew it back in Dec and missed some gain. Never again. I've been redeploying that money on this pullback. Still down quite a bit on paper but it'll be back many times over.