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Thursday, March 12, 2009

Gold and Gold Miners buy now to buy later?

I blogged yesterday that I am trying to avoid buying Gold miners until they pullback and are "cheap" I also said "Gold and gold miners should get CRUSHED, as I previously blogged.".

I subscribe to a variety of pay-for-blogger analysis, and frankly, I don't do any analysis except try to take in everyone else's. Sure I look at charts, daily moving averages, etc. But that's about it.

Gary of the "Smart Money Tracker" has a pay service that is a must if your into looking at precious metals and miners. In today's pay service email, he makes a strong arguement to buy Gold miners now or around here, etc rather than wait for a cheap purchase that may not come. If you want more details, go pay for his service for his explanation.

For myself, I'm a bit torn. I know with all my passion that gold miners is the play for the next few years, and I want to get into miners full tilt at some point. But I recently took a pretty decent hit in the market, and I don't want to take a chance of another hit. So I am going to take my own advice and buy over time, up or down. The next decent down day I'll add, a little. And try to buy gold miners between Gold at 900 an ounce down to 600 an ounce. It may never get cheaper than here, but could go to 750. 600 an ounce I'm planning for as a worst-case scenario. This is better than trying to pick some sort of exact bottom.

If gold makes a run for the border and hit 1100 an ounce, I can "chase" later, although I would rather not. But I just can't take the chance that gold tanks and be overly invested.

I have blogged a bit on Gold, Oil, food, resources, and I do truly believe they are all long term winners. But its been a struggle for me to convert from shorting financial stocks and buying into what is basically a long term "doom" play.

UPDATE: "Happy John" in response to this blog entry said:
1 - when a good case can be made for an asset to move either higher or lower in the near-term, it's best just to stay out.
2 - Money missed is FAR better than money lost! Opportunity is endless, money is not.

I wish I had seen this video when I posted "Preparing for Anarchy", pretty funny stuff (thanks Swan)

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