Sunshine Profits

Briefly: In our opinion short speculative positions (half) in silver and mining stocks are justified from the risk/reward perspective.

We previously emphasized that the situation in Ukraine was the main bullish factor for higher precious metals prices (mainly for the price of gold) and that remains to be the case.

Gold, silver and mining stocks didn’t do much on Friday, so what we wrote in Friday’s alert is generally up-to-date.

In short: In our opinion, no positions are currently justified from the risk/reward perspective.

The U.S. dollar remains mixed against major currencies after Federal Reserve Chair Janet Yellen signaled that recent soft economic data haven’t swayed the central bank from a strategy of trimming its monthly bond purchases by $10 billion at each of its policy meetings this year.

On Friday, crude oil gained 2.27% as the U.S. dollar weakened against major currencies after a monthly U.S. employment report came in weaker than expected.

In the past years, the Federal Reserve dropped many inflationary bombs on the markets.

In short: Opening a speculative short position (half of the regular position) in gold, silver and mining stocks might be a good idea right now.

After the announced “tapering” all the doubts were centered around the question, how big the “tapering” is

In our previous article on gold, we examined the situation in the U.S. dollar and the euro as many times in the past they gave us important clues about future precious metals’ moves.