NFTRH Update, Precious Metals

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.