Monday, April 15, 2013

A Glutton for Punishment With All that Glitters

Yes, I am a glutton for punishment and I continue to think that the if you buy the gold equities that you would be rewarded in the long-term. I am not just saying this, but have committed a significant portion of my own capital to this idea. This is as the timing models turned positively, and now undoubtedly so. This follows Friday's route, which saw the price of the price of the yellow metal fall to around $1,500 per ounce. This is in conjunction with a a significant increase in the non-seasonally adjusted money supply figures, gaining nearly 1.3% on the most recent reported week and coming it at just over $10.6 trillion. This leaves all three timing models in significant strong buy (at least in the historical perspective) ranges, with the 1-year model finishing the week at a -2.9, the 3-month model at a -2.3, the 6-month model at -2.4.

The following are the most recently updated charts for the three timing models

3-month model


1-year model


6-month model


The last time all three models dipped below the -2 demarcation was during the late 2008 route in gold and the gold stocks, occurring in the heart of recession where nearly every asset class was sold relentlessly. I continue to hold my thesis that long-term investors will be rewarded despite the short-term pain.

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