Gyroscopic Investing

I have a bit of cash sitting in a Roth IRA.  It might be fun to try GDX or GDXJ.  I notice that both are above their moving averages since mid-march.

Might silver stocks be more fun?

So are there some guides for getting out should things sour?

Has some sort of party started? 

Thanks.

Miners are the kinds of things that can turn on you in a hurry, then you regret it. I had a lucky GDX experience this year, but it was just luck. I am disinclined to repeat unless GDX hits new 52 week lows.

You might want to consider that the commercial hedgers are selling like mad into this rally.  They're not often wrong.  So wait for a pullback and then reassess whether there is in fact any ground underneath Wile E. Coyote?

But either way, use a trailing stop or moving average and get out when things go sour.

MG, Ocho,

Thanks.  I was thinking of jumping in.  I'm glad you two gave me pause.

We will continue this real soon as the weekend is here.  The sun is out in NYC.

Cheers.

Being a natural born cheapskate, I gravitate towards the voices that are broadly calling for gold in the $900 range due to the global deflationary storm which has broken across the commodity world where I work, but not as much across all sectors, but which might. Therefore, I am still buying bullion very slowly, a coin at a time, in case this storm never comes, with a plan to have a full gold position in 5-10 years. But if gold goes to $900, GDX will be dragged with it... then would be a great time to buy in bulk.

Doug Eberhardt, @DougEberhardt    <- he is a dealer, and talking lower prices is talking against his book
Sunshine Profits, @gold_silver_SP
Harry S. Dent, @harrydntjr                <- Harry is always hyperbolic, calling for gold as low as $250 in the worst case
Gold Bug on SeekingAlpha.com

Ocho,

Harry Dent does get my attention.

Gold stocks?  How about NUGT, a hyper small mining ETF?    NUGT can effect physical changes.  I once had brown hair.  MG can develop a nutritional/supplement protocol for jumping in and out of NUGT

Isn't buying one coin at a time expensive?  Are there no quantity discounts out there?

A good dealer is handy, though.

Thanks.

Kevin,

If I buy $60,000 of coins from my dealer, I get a 0.5% discount. Not worth it if I think the price might go down tomorrow. I buy in little increments, and I'm OK with that.

$NUGT and $DUST are triple leveraged gold and inverse gold ETFs. Incredibly dangerous products, for day-trading only. You will be ten times more volatile than gold itself.

Since you just asked what about them, you did not know already, you should stay the He11 away from them. They are not for you. They are not for me, either. I will never touch them. I tried and died with triple-leveraged oil $UWTI, tried to pick a bottom in oil. I was so smart. Then I lost my oil related job. We were all so damn smart. Thankfully, it was only play money for me, but I still had a real loss.

Ocho,

Got it!  And the hair is not going back to brown, anyway.

Thanks