Nice pop from the gold miners this week

Here's a chart of the three gold mining stocks I purchased on May 6. One way up, one up in line with the Market Vectors Junior Gold Miners (GDXJ), and one way down. Luckily, I'm overweight the big winner and underweight the big loser. I don't know whether this rally can last, it really will depend on whether gold prices can hold up. But I think it's a good hedge in case my bearish stance is wrong, since I believe the miners and gold will do very well if we have inflation rather than deflation. Thus, with a smaller allocation of capital I can achieve decent returns if my larger bearish positions are wrong.

No comments:

Post a Comment