Prospects for Metal Miners Remain Positive
Thomas Noon submits:All precious metals have risen strongly since July 30, maybe too much so. Or should I say, most world currencies have fallen strongly. A pullback in precious metals should not be unexpected; selling covered calls on GLD and SLV could be a smart move until gold settles in over $1300 for a longer period. I have done some of that myself. I’d rather be more of that “hog” and less of that “pig”. The fact is that over 75% of my liquid investments are monetized in gold, so I am still heavily exposed to the idea of a drop in the USD for a few more quarters (or years). If the dollar continues to fall, my positions will be remain with strong gold exposure. However, I must confess to a feeling of being overly exposed to gold and to avoiding dollar-denominated holdings, given the mighty moves down in the USD in the recent 6-8 weeks. But, everywhere we look, we see reasons to maintain a lack of belief in paper currencies. Complete Story »
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