Eh? <<All gold and commodity stocks are far more volatile than consumer/industrial shares... & Buy and Hold is not a good strategy for gold shares It would be wise to buy when commodities are in an uptrend and use protective stops>>???
Sammy, a couple of things... if you held BGO or Kinross or AEM, or Glamis or... pick your favourite Goldie, you would have done very well by holding them since 2001. Or you could have picked your favourite junior at the beginning of this year & hold on through the violent corrections that we have had. It all comes down to your own personal tolerance to risk and what your trading horizon is,ie: short-term/long-term etc...
As far as commodities go, if your a trader, & my guess is that you are, the prudent purchase of a given commodity is to buy at support and sell at resistance... I'm reluctant to chase any stock GOLD, commodity or whatever.
Is quite clear on the 2 monthly charts that I posted, when GOLD broke out of its bear market. In my opinion, the best trade with a low risk entry was at the beginning of the decade... now the risks are that much higher. Take a good look at some of the Gold stocks that have been mentioned on this thread, Glamis has been taken out by GG, ABX has taken out PDG, Newmont took out Franco, Freeport gonna take out Phelps Dodge, M&A always happens at the top of a market, not at the bottom, IMHO, the best risk reward plays are the juniors, the seniors look tired...
When I use to play with GOLD back in the nineties (while everybody was chasing techies & GOLD was considered the old yellow relic), you bought when there was blood in the streets & you sold when everybody was euphoric.
Not much has changed...
All FWIW only
& more recent example :) bought @ $3.50ish & sold @ $28.00, not bad for a 6 month hold <ggg>
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