Precious Metals – A Massacre in the Making (November 11, 2016)

by FI Fighter on November 11, 2016

in Precious Metals Updates

Apparently, the market believes that President Trump is going to waltz right into the White House next year and fix everything that ails the economy…

screen-shot-2016-11-11-at-11-14-41-pm

Gold and silver are dropping like the pet rocks that the majority of folks out there perceive them to be…

Could we be headed back down to $1,200/oz gold and $17/oz silver?

Or worse?

Too early to say, but right now (and perhaps in the near future) it’s going to take a lot of courage to buy into this type of sell-off event…

Meanwhile…

spot-copper-60d-large

Looks like DR. Copper certainly believes in President Trump’s plan of executing a massive infrastructure build out…

Got copper?

Holy smokes, I did not see any of this coming…

Precious metals and clean energy… My best ideas… on the wrong side of the short-term trade… Maybe I shoulda been buying coal instead?

Nah, no worries here folks…

I’m a firm believer in precious metals and clean energy… I think that’s the place to be right now and in the foreseeable future… Despite the markets currently telling me that I’m the biggest idiot on the face of the earth…

 

I will remain stubborn and hard-headed until the end… My conviction here is that strong.

 

Happy Hunting!

{ 14 comments… read them below or add one }

1 JC November 11, 2016 at 9:46 am

I just bought up more gold today. Unfortunately, I did not buy the bulk of it earlier this year (darn FOMO) but have been averaging down on the drops since August. Sucks to see everything in red but I’m in it till the end as well.

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2 FI Fighter November 14, 2016 at 6:20 pm

JC,

Yeah, short term pain for long term gain, hopefully! Best of luck with all your purchases, I’m a strong buyer here as well.

Cheers!

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3 Roadmap2Retire November 11, 2016 at 9:52 am

Haha its left me scratching my head too. Precious metals down and base metals up because Trump won the election? This market is bonkers

R2R

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4 FI Fighter November 14, 2016 at 6:23 pm

Sabeel,

Well stated, this market is bonkers… Well, what can you do? Haha, I try not to overanalyze things I can’t comprehend, so if I see value, I’m just gonna do the easy thing and keep buying.

With precious metals mining stocks, I’m finding deep value in spades 🙂

Best wishes!

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5 brownsugar November 11, 2016 at 1:13 pm

Hey FiFighter,

I really appreciate your work and your stance. Rick Rule would say, in mining stocks you were either a contrarian or a victim;-) Stay the course. Time is on our side.

Regards
brownsugar

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6 FI Fighter November 14, 2016 at 6:24 pm

brownsugar,

Thanks for the support! Haha, I’m doing my best to be a contrarian although I sure feel like a victim right now 😉

Staying the course and holding strong!

All the best!

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7 Finanzr November 11, 2016 at 1:52 pm

A wise man once said: The difference between persistence and stubbornness, is success! 🙂
Stay the course…

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8 FI Fighter November 14, 2016 at 6:25 pm

Finanzr,

Haha, yup stay the course! Easier said than done, but I’m stubborn as hell, so I ain’t selling any of my gold miners at these ridiculously low prices.

Cheers!

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9 Jay G November 11, 2016 at 4:22 pm

Man… talk about a shellacking! On the chart, it sure looks like the Aug. 2012 downtrend could very well be in play. On the other hand, fundamentals have never been stronger. Did you hear the news of India banning Rs 500 and 1,000 notes? Physical gold was going for as much as $USD 2,300/oz on the street over there, just a couple days ago. I’m cautiously bullish, but already bought in as much as I wanted to allocate to the sector. Double down and reduce cost basis, wait it out, or walk away right now. Tough call. GL to all.

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10 FI Fighter November 14, 2016 at 6:26 pm

Jay,

Yup, it’s crazy how much the world has changed in just a week’s time. It is tough trying to form a strategy right now, as the trend is definitely down for precious metals…

But I do love me a good firesale, so if I see deep value, I’m going to jump in, with the acceptance that I could end up catching a bunch of falling knives in the process…

It ain’t easy, but who said investing ever was?

All the best!

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11 James November 12, 2016 at 11:17 am

Base metals and cyclical stocks are rising in anticipation of fiscal stimulus (I.e., helicopter money) from Trump promising to rebuild the national infrastructure. Bond yields are also rising anticipating Fed tightening and increased economic growth resulting from this deficit spending. These factors are a short to medium term negative for gold. The good news is when the markets recognize inflation really taking hold from increased deficit spending, the gold trade will be back on. In the meantime, I’ll be buying JNUG for a short-term trade in the coming days-weeks as gold is currently technically oversold.

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12 FI Fighter November 14, 2016 at 6:28 pm

James,

Yup, industrial metals are soaring and the risk on trade is back on… Funny how the market seems to think that with inflation on the horizon, gold should somehow be left out from the rising trend… But I guess with rising yields and a stronger USD, gold is under a lot of pressure right now…

The bond markets have been going nuts, very much worth watching that market most closely moving forward.

Gold does look oversold to me now, and I would expect a bounce near-term, even if the underlying trend is still to the downside.

Best wishes!

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13 Kisev11 November 12, 2016 at 5:24 pm

I reckon bond yields will keep rising on the expectation of higher inflation due to Trump fiscal stimulus. Higher yields make signal the burst of the bond bubble and give us our decent into next recession (depression) early to mid 2017, especially as the realities of Trump presidency sink in upon inauguration. In that carnage I reckon there’ll then be a flight to safety to gold and silver stawcks. Industrial metals will be on the floor for another 18 to 24 months or more with bargins to be had. PMs to do well again early Jan17. Just my thoughts.

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14 FI Fighter November 14, 2016 at 6:30 pm

kisev,

Yes, treasuries are being dumped big time right now… If there eventually is inflation, I would imagine gold would hold up and do very well…I can’t see rates normalizing back to normal anytime soon, so interest rates will give way to inflation and the Fed will get what it wants… If real rates stay low, near zero, or even negative, that’s gotta be good for gold.

I remain very bullish on gold medium/long-term… Short-term, yeah, I wouldn’t be surprised to see more pressure to the downside.

Best wishes!

Reply

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