Ref. Buffett Buys a Gold Stock! posted on August 17 as the correction was just getting started.
In that post you’ll see 3 gold bug megaphones who just could not wait to get on the Twitter machine and tout the coming of the Oracle of Omaha to the gold sector. This stuff sucks in less experienced bugs like, well, bugs to a light.
Buffett is selling banks and buying a #gold stock. Maybe he's been listening to my podcast. He is clearly not as positive on the U.S. economy or the dollar as his recent upbeat comments suggest.https://t.co/PkgUOs8iYL
— Peter Schiff (@PeterSchiff) August 14, 2020
I saw on MarketWatch last week that that very same gold stock, Barrick (GOLD) was reduced by Mr. Buffett along with other reductions to his portfolio. Maybe he’s even dumping the rest of it during this week of bloodshed. That’ll teach a well healed, buttoned down investor like Warren to deal in the ignominy of the gold mining patch.
Frankly, I have felt like a Keystone Kop at a couple of points during the correction, mostly in my ill-timed shorting which, aside from one really good and profitable trade has proven a waste of time. I got mentally whipsawed a couple times since August. The whipsaws took the form of a couple of upside breakouts that promptly failed. But they screwed me out of my shorts.
From fairly new subscriber Bart M today (w/ permission to publish)…
Compliments for calling the correction in PM complex. In a restaurant we complement the chef, at NFTRH the maestro. Well done, not an easy call to make and … to stick to:) We went through some whipsaw along the way….Even a fake upside break out.
Thank you Bart. I don’t really think I called it. Just allowed for it and then slanted the probabilities to it.
From Bart (and what I am most proud of, an ability to admit when wrong) when I requested to re-print…
Don’t mind at all Gary. To me you called it, because you took responsibility when it seemed to break out, unexpectedly, on the upside.
In the middle of this post comes an email from ‘YC’, and since I appear to be promo’ing you, let’s slip a clip from it in here (with permission).
I am very impressed by your calls on the precious metals, and especially targets on HUI & WPM ($40).
Note: WPM initial target was around 40, and it has sheared through it.
Today I am hedged by being well short of silver, short the euro and simply by being long the stock market, especially in the areas of commodities and resources like Agriculture, Lithium, REE and most recently, Uranium. Add in a touch of value stocks here, Bitcoin there and Pot stocks as well, and I am not only surviving the gold stock tank job (to the NFTRH targets), but making solid gains, which frankly I have never done before in the throes of gold stock extremis, while holding gold stocks!
Anyway, I am not calling a bottom here but I did add Warren’s gold stock today as it dive bombs below the SMA 200 and sets its eyes on the gap around 20.50. Added a couple others too. I don’t want to get too cute on trying to tick the bottom. I don’t think the miners are there yet. But we’ve got our targets at the ready and the macro is playing ball nicely.
2020 came out of nowhere and has taken its place as the most interesting, most rewarding year I’ve had in a long while. Thank you 2020. Thank you Warren. Thank you Peter, for your reliable contrary signal. Oh, and thank you…
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