Gold and Mining Shares

Posted by Peter Grandich - Grandich.com

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beat1

Mining and exploration stocks have been brutalized…..

                                                                       beat1
First and foremost, I want to thank the “Silent Majority” of readers who wrote some very nice emails in the last 24 hours. It has help ease the pain considerably.

Speaking of pain, gold and mining shares have been badly beaten up and there’s no immediate relief in sight. The only positive is the bearishness has become overwhelming and if support can hold in the coming weeks, we should get a compelling contrarian situation not seen in years.

eliottWaves gold body gold

The line in the sand is $1,520 area. It should be heavily targeted by the overwhelming number of bears now. The sidelines remains the best place for gold buyers until the line in the sand is tested. The ultimate conservative approach remains not to be a buyer until gold can close above $1,700

Mining and exploration stocks have been brutalized and it shall take weeks, if not months for them to repair the damage. I just can’t fathom how they do so without first seeing gold reverse its current bearish trend. I do think Rick Rule makes some very good points in this video about this sector. I do think those fortunate enough to have risk capital can begin a scale-down buying approach (you place bids from current price to lower levels).

I will attempt to review Grandich companies starting next week but first we need three days straight of not lower prices so margin and other types of selling can dry up

“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.” Warren Buffet

 

 

ABOUT PETER GRANDICH

Founder, Grandich Publications, LLC. and Grandich.com
home of the internationally-followed blog, The Grandich Letter

Founder, Trinity Financial Sports & Entertainment Management Co., LLC