dj - waht is short term? Also am in the camp of the goldbugs, bullish 2003-2004.
Shorter term,
lvlamb.itgo.com
sub $300 prices are not purely rethorical.
Short term (eventually, there is always hope), gold and silver futures contract are deliverable first day of December. This is, IMHO, the only event that (eventually) could create some short term demand.
Short position in miners is building up, but an eventual shorts squeeze is limited in time.
Not expecting an earnings rally this time. Last years stellar earnings of SA miners were due to the underperforming of the Rand. One time event.
On the negative side, in the deflation scenario, all assets will be hit. Paper assets first.
A date I keep in mind is Oct 31, deadline for tax-loss selling.
If, as I expect, the general market will make a significant lows this quarter, shares of miners can follow the trend.
Hence, for this quarter I have a position (long term and hope till 2004 <ng>) in miners as a lottery ticket for a Dec-Jan eventual upleg and keeping cash to buy the metals. |
