Precious Metals – Ugly Bloodbath… but Wait (July 7, 2017)

by FI Fighter on July 7, 2017

in Precious Metals, Precious Metals Updates

I’m a patient guy, but c’mon it’s getting a little trying waking up to the same ol’ routine each and every single day…

Can the precious metals (silver in particular) please catch a break?

Did a massive (but innocent) meteor carrying with it billions of ounces of easily extractable silver just hit the earth that I’m not aware of?

Oh wait, all of this is due to jobs growth in… government?

From CNBC.

More from CNS News.

Who needs manufacturing, anyway? It’s so overrated…

Besides…

“The continued vitality in the U.S. labor market means that the Fed is on track to begin shrinking its balance sheet in September and to raise rates again in December,” said Nariman Behravesh, chief economist at IHS Markit in Lexington, Massachusetts.

Sure thing boss…

Don’t make me go and back up more trucks…

But wait, the miners are actually holding up surprisingly well amidst today’s gigantic selloff event in the paper metals space…

My own personal mining portfolio shown below…

The worst hit is only off -3.26%?

Hmm, that’s not anything really worth writing home about… or blogging about…

Pretty uneventful day in the precious mining stocks, all things considered.

But what a brutal summer it’s been, no doubt.

 

It’s a game of patience folks… immense patience is required to play this game.

 

Fight On!

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{ 5 comments… read them below or add one }

1 FinanzrNo Gravatar July 7, 2017 at 10:14 am

It is so easy to get entangled in the micro-picture.
As you always say: it is important to always look at the macro-picture.
Did anything in the last days fundamentally change the long-term story of PMs and Silver? I answer this question with no. My thesis is still intact and that is why I stay long.

I think if you do not have a solid investment thesis for both the sector and the individual companies you are investing in, the likelihood of getting fleeced by short-term price action is ver high.

The longer I am in this sector, the more I get the feeling, that the miners DO lead the price development of the PMs. From May to June Gold went up – the miners did nothing or went down. It might well be, that we now have the reverse happening and the intermediate bottom is near.
Wake me in 1-2 years from now… 😉

Reply

2 FI FighterNo Gravatar July 7, 2017 at 10:45 am

Finanzr,

Thanks for the comment. You’re right, as investors who aren’t in the space for merely day trading, it’s important to focus on the fundamentals and macro picture.

I was being a bit dramatic, but in all seriousness, nothing has changed and I don’t plan on liquidating out of my core holdings until we see much higher prices and sentiment towards the precious metals improves profoundly.

In regards to who leads who, that’s always been a tough one to figure out… There are lots of head fakes and I know the miners aren’t always right and the metals aren’t either… In January 2016, the miners cratered through the floor while the metals held firm (the opposite of what’s happening now)… At the time, most everyone thought it was the end of the world for the metals b/c they were positive the miners were leading the way back down again… Turns out, the metals were right and within days/weeks, the miners were breaking out to new highs and what we all thought was the start of a new bull market.

I personally think it’s best to operate under the belief that nobody really knows anything about everything… The markets always surprise to both the upside and the downside.

That’s why it’s always prudent to be well loaded with cash.

Cheers!

Reply

3 FinanzrNo Gravatar July 7, 2017 at 10:58 am

True that – it is always easy to draw conclusions in hind-sight. Better avoid doing only that, as it will not make you a better investor…
Having cash at hand is really my biggest weak-point! Somehow difficult for me to discipline myself to hold onto more cash.
I have a couple of Biotech Companies that where doing quite well. I bought most of them when sentiment was so bearish before the US election…
So if things get worse for the PMs, I will liquidate there and re-allocate.

I should really not buy new stuff anytime soon and build my dry powder.

Reply

4 Financial SamuraiNo Gravatar July 7, 2017 at 6:33 pm

How much is the whole sector down the summer? I haven’t been paying attention but it sounds like you believe there is a buying opportunity right now or soon enough?

Reply

5 Investment HuntingNo Gravatar July 9, 2017 at 9:42 pm

I’ve been buying more shares here and there. I think it’s a good time to buy. What are your thoughts on Lithium? Do you see this going up soon?

Reply

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