HUI has dropped to a thus far ‘higher low’ to the critical 217 parameter.
- Gold Bug sentiment is down to 10% by the Sentimentrader data we most often review.
- The Central Fund of Canada is selling at over a 6% discount to NAV.
- RYDEX fund flows show little interest in the precious metals.
There are other contrarian sentiment indicators that show a positive risk vs. reward, but the above give a good view.
I have started to buy a few things this morning, including the aforementioned Central Fund. If I am wrong these will be sold instantly. For me “wrong” is defined as a short term failure and decline toward or through HUI 217.
In short, today seems like a time to take a poke, especially considering that the yield curve structure seems to be holding up well.