On gold eagle linked from jsmineset. Is this supposed to be bullish for gold? Now Sinclair often said that central bank buying gold was the sign of a market top. Certainly central bank selling coincided with the market bottom early 2000. Sadly there is no forum on Sinclair's forum to discuss my confusion.
Just remembered the best documented and demonstrated exponent of the Bigger Fool approach was described by Nicolas Darvas. His books are cheap and still in print after 50 years. Of the about four books on trading that I think have any use his is two of them. I must have read an embarrassing number of books on trading and one day I looked at the shelves and through out all but five. His was two of them.
Buy low, sell high is trading yes? Not investing. What you are suggesting is called the "Bigger Fool Theory" approach. That is it doesnt matter what you buy so long as there is a bigger fool to buy it for more. Problem applying that idea to this stock is its going into production. And that is a drainer because it means much of the mystery has gone. The bigger fools pay more for gold yet to be discovered that gold thats been drilled out enough to start mining. Mining takes the speculative attraction out of it. So you have to go back to fundamental value. Conclusion is this is the wrong stock to speculate on in that way.
It would only be a negative view if it was wrong. Can you point to someone who got rich from dividends from mining companies? Can you point to someone who even bought a cheeseburger with dividends from mining companies?
Sigh. Here is the thing with the entire gold mining industry, it is arguably worth zero. All of it.Even if a gold mining company makes money it goes towards further "growth" and not as a dividend stream to shareholders. And the residual of a mine is always zero by definition. Subtract issues and placements and you often get a negative number at the shareholder interface. Directors, workers, contractors, lawyers and brokers get money from it but shareholders don't. Ask yourself why does Warren Buffett have no of few mining companies? There was an academic study done on the entire mining industry that concluded much the same thing.
Will TRX make a profit? Well maybe but I bet it doesn't end up in your pocket.
google "Market cycle guru". Elder's book Trading for a Living has a chapter on them, page 17. "A guru remains famous for as long as the market behaves according to his theory"
Sinclair's 1650 call was flawed. It was based on macroeconomic factors. See the five pillars that include the top of the bond market and loss of confidence in the US dollar. It was an OIL and BASE METALS BULL MARKET. Gold was dragged along. Right before the GFC he stated "THIS IS IT. IT IS NOW.". As a useful market analyst or strategist he is a failure that somehow gets excused by all the cultists who lack the critical thinking capacity to see this.
You are impressed by the same guy who said what I quote below. You are easily impressed. Read em and think.
1978 "Sinclair became bearish but got out when prices hit $265 an ounce in late May.” – Newspaper article
1979 Jan 5 "Sinclair a recognized expert on the global gold market is warning his international clientele that he is bearish on the metal for the next 18 months and bullish beyond that time." - Newspaper article
1993 Apr 15 The Bear market in gold is absolutely over. - JS
2010 Feb 11 This Is The END - JS
2011 Apr 29 Formational breakouts are selectively happening in some precious metals shares. - JS
2011 Jul 15 Gold Milestone at $1,754 Paves Way to $12,000 - JS
2011 Sep 23 Market Violence Will Create Large Bear Trap - JS
2011 Sep 27 We now expect a bottom action to occur at or above today's low of $1535 - JS
2012 Apr 25 Shorts Now Trapped & Gold Could Gap Up to $3,000 - JS
2012 Apr 30 I told you my clone would arrive. - JS
2013 Jun 10 Get Out OF The System - JS
2013 Jun 14 I will sell anything I can, not gold, from cars to boats to houses to buy my favorite gold shares. You should do the same. - JS
2014 Jul 14 There is a strong possibility that this is the last take down before gold trades at new highs. I feel this is the situation. - JS
There is an important difference between Armstrong and Sinclair. Armstrong would like his followers to make money by following him.
Yes HCTH Annie, where did you first see the recommendation? It would be good to help track down the culprit to aid the SEC investigation.
Reminds me of the expression "You can't plant a row of beans crooked around here." It means the neighbours (yes its spelt with a "u" here) are always watching.