Joey Ting asked 7 years ago
Hi PC,
I know it is difficult to generalize. But do you have ‘planned’ exit prices for mining stocks? (apart from the one you mentioned like EXK)
pcwong Staff answered 7 years ago
As the new financial crisis unfolds, gold and silver will continue to crest new highs. The difference between 2008 and now is that debt has increased US$70T, money printing has grown exponentially, global derivatives has grown 2.5x. Gold and silver will exceed their historic highs.
Personally, I do not have price target to sell the miners like ABX, PAAS, GDX, KGC, BTG and GDX, SLV and AGQ for the ETFs but it will be close to their historic highs.
MML I have a target above A$1.20. But if the fundamentals are strong I am prepared to let it ride.
pcwong Staff answered 7 years ago
I need to add that taking profit is often subject to your own risk appetite. It also depends on how long you intend to hold your positions vs the risk of gold price falling.
Sometimes a bird in hand is worth more than two in the bush.
I have other trades which I do take profit every now and then.
Follow what you think if best for your investment NOT what I do because our risk acceptance differs.
pcwong Staff answered 7 years ago
Having said that, I think most of the miners could deliver about 100% to 150% in gain over the next 12 to 18 months, given the current financial turmoil and the US election. More gains if there is a debt implosion.
One of the best way to play is to take profit to cover the cost of your initial investment and the balance of shares to let them ride to their potential.
Joey Ting answered 7 years ago
Hi PC, thank you for your reply. In my humble opinion, I think it might be too early to have AGQ in the portfolio. I didn’t dare to tell you this until know. As you probably are aware, x2 inverse ETF is only for short-term trading.
pcwong Staff answered 7 years ago
I don’t recommend AGQ to new investors either. That is why in my stock sharing I have never included leveraged plays because not many people can stomach it. The price movement can be “traumatic” for some, just like a CFD.
But AGQ is a leverage ETF where it is not inverse but follows the price of silver. So a 20 cents movement in price of silver on the upside can translate into a 60 – 80 cents gain for the ETF. My investment into AGQ is small anyway.
If you want inverse play you can try the SH or SEF. SH is inverse to the S&P while SEF is inverse to the financial stocks.