We Discuss Gold and Gold Stocks with Palisade Radio
My latest comments on precious metals amid the recent carnage.
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Recently, we have seen gold make a downward turn. Jordan Roy-Byrne predicted this turn, and put a hedge on his gold positions. He thinks we should be looking for a bounce soon. If October doesn’t turn to be a bad month it will be a good sign that we will start to move up again. If the market takes more time to digest these losses, it could be anywhere from a month to a few months before we start to move back up again.
Jordan is on the bullish side, and thinks this is just a correction. For the most part, once this technical damage passes he thinks this is a great buying opportunity. In the minors we are not quite at a 30% correction yet, and now is a better time to buy gold than it was a few weeks or months ago when people were worried about the correction.
Buying and holding is the way you will make a large amount of money- not trading in or out. He makes buy decisions by putting a 20% mental stop on his position. So if you are putting a 5% to work and use a 20% mental stop, then you can only lose 1% of your portfolio. He gets into investments that have a big upside potential and a low downside risk.
Gold is already oversold and if we go down further, it will be oversold that much more- so now is the time you really want to step in and buy. The likely worst case scenario is that it might go down a bit for a few months before the trend reverts back to bullish. When you take the hedge and start to see significant profits, you should take them right away because a lot of that can disappear in one day.