For the most part, I am just about done purchasing gold mining stocks. I made it a goal of mine to only participate heavily during periods of immense fear and despair. Until further notice, those days are now over.
Although we’ll always be able to find things to nitpick about in our portfolios, there was one holding of mine that I was pretty eager to get rid of — Eldorado Gold (EGO). Long-term, I think the company will do very well, but I just wasn’t that comfortable owning a miner that has such strong ties to regions such as Greece and Turkey. Not at this time, anyway.
Today, I used the the strong rally to de-risk myself (geopolitically), and book some small profits.
Everyone’s situation is different… In my case, I think that I’ve already got enough exposure to mining stocks where it really won’t be a big deal if EGO outperforms and soars from this point forward.
- If EGO shares keep riding higher, the rest of my portfolio should also be doing quite well.
- If EGO shares tank, for whatever the reason, I’ll be glad that I’ve got some extra cash on hand…
I’m good either way…
And I could always use more cash! 🙂
No guarantees, but as of today, I’m pretty happy with the holdings and have no further plans to add or sell anything.
FYI, I did add shares of prospect generator Arena Minerals (AN.V) a few weeks ago… This is more a “lottery ticket” gamble, but they’ve got really strong partners backing them in: JOGMEC, B2Gold (BTG), and Teck Resources (TCK). Plus, you’ve got a large shareholder (~12%) in Ross Beaty (founder of Pan American Silver; PAAS) who believes in the story, so that’s always a plus.
New releases from AN.V will be worth watching as their drill programs ramp up throughout the year…
That’s the only other change to the portfolio, which sits at 20 holdings now.
And that’s a wrap…