Wednesday, September 10, 2014

Just Sitting on Your Hands with Precious Metals

I was out yesterday hemming and hawing with musings and insights into the general course of precious metal investments in regards to the central bank machinations, key movements in the currency markets, a dial down of international political flare ups, etc. Although I think we could see some more downside here in the precious metals complex, for my money, I am staying with the investment. Some of the my largest investment mistakes have come at the hands of attempting to be to cute, too 'fine tuned', and too on the ball when I should have just been sitting on my hands...... more so in regards with a thesis I believe remains in tact but I was attempting to hold gains. 

But lets face it, the dollar trade is the big mo trade at the momentum and that is unlikely to stop on a dime. Just look at that gain......

More so, yesterday's pullback in no way suggested a reversal moment, especially in regards to the action in the Yen and Euro. Here exemplified by the FXY and FXE.



That said, parabolic moves like we see on the dollar rarely maintain themselves in the long-term. If I was to reduce my precious metal positions, a pull back in the dollar signaling potential strength in the precious metals may be the time to do it.

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