SILVER Junior Miners May Lead To Fortune
Commodities / Gold and Silver 2010 Nov 11, 2010 - 05:13 AM GMTBy: Bob_Clark
"There is a tide in the affairs of men, which taken at the flood, leads on to fortune." I have always loved that quote from Shakespeare's "Julius Caesar". Every trader and investor should know it by heart.
Are we a float on a full sea? What vessel will serve us best?
The precious metals are truly stunning in their ascendancy. The time has come for the junior explorers to stretch out and run. This is it, it is go or go not. This is the tide on which fortunes will be won. I thought that this would be a good time to take another look and see how the juniors are performing since I recommended buying them in August.
In the Market Oracle article that I wrote in August titled "time to buy silver nears" I said I thought that the juniors explorers could double in the coming months. Here is the quote.
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" If my theory that the compression is coming to an end is correct and the juniors continue to trade in a linked fashion, then 100 percent rallies are probably coming."
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Since then they have doubled and it has only been three months. Some of the moves have been much larger.
I want to remind you that many of these companies have questionable management and their underlying holdings of raw, in the ground ore, is also questionable. Remember Bre-x gold, if you don't you should google it. The junior sector is full of them, in fact I would go so far as to say that most of the juniors in play today will go off the board at some point.
Here the thing and this is important. This is not that point.
So why do I bring this up? It is so that if you do venture into the junior metals arena, when you fall in love, maybe you will remember this and look for signs that your true love and the promoter that runs it, may not have your back. Maybe worse, they may be planning to put a knife in it. The other reason is so that maybe you don't fall in love at all, but keep all your dealings platonic.
Have a harem, not just one. The rising tide of fortune will lift all boats but some have anchors more firmly stuck in the muddy bottom and may not rise as high.
All of the stocks I used in my analysis are questionable and I didn't give their names in this article although I do own them personally.
Think of gold and silver as the generals, the fearless leaders. They have already shown the way and led by example. Now it is time for the rank and file, the foot soldiers, to go bravely into the breach. They are the juniors and some will rise to greatness. More important is, most will rise.
A quick look at the charts shows that many or the juniors are still priced very low. We see two years in the wilderness with no price appreciation. If this is the start of an inflationary cycle, as many are proclaiming, then surely we will see the price of their resources pushed higher over time. They have all doubled in the last few months. There will be a bid underlying them for the foreseeable future. What I am doing is trading them. Buying when they fall and relying on the Benanke put to be their life preserver. I don't hear their siren song and cast them off when they become to haughty and proud.
Here is the thing. Most are flotsam and jetsam that will float up and down on the tide. That is all I ask to make me rich, just float up and down on an undulating sea. I am happy with 20 or 30 percent in a few days.
You should know
There is a dark force swimming beneath the waves and there is always the danger that this monster pulls your trading vessel under, never to be seen again. The naked short seller is in it's element now as the volume increases in the junior sector. They will be attacking every stock you own. Selling into every rally. These counterfeiters are part of the food chain that our soulless social order has bred. They are part of the moral hazard that is giving us the great Red undulating tide of debt. That tide will either drowned you or if taken at the flood, lead on to fortune.
Like Captain Ahab, already dead, Bernanke beckons us onward. It is our destiny.
I have embedded the full fore mentioned quote on my blog for your enjoyment. It has been my friend for many years. I also posted a link to my nightly Evisory, in which I documented buying the bottom stock on the chart above.
I can give you the skills and tools to float you to fortune. Please see my blog for details.
Always remember the markets are controlled by the few. When you trade or invest, if you are not with them, you are a victim.
Bob Clark is a professional trader with over twenty years experience, he also provides real time online trading instruction, publishes a daily email trading advisory and maintains a web blog at www.winningtradingtactics.blogspot.com his email is linesbot@gmail.com.
© 2010 Copyright Bob Clark - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
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