In the last two days, gold the metal and gold stocks parted ways. The positive action in the physical market failed to lift the stocks higher. As the gold stocks normally lead the metal, this was extremely bearish for the entire PM complex, so much so that the last up leg I have been clamoring for may not materialize. I sold our tiny position in KGC at the open today (100 sh @ $9.45), mainly to make room for some acquisitions in my wife’s account. The fact that KGC incurred losses in the face of rising gold prices certainly didn’t help its case.
I have decided to hold onto the rest of my PM stocks and look for opportunities to add during dips, perhaps in two months time. Although the PM equities can still turn on a dime, I’m more glad than ever that I lightened 1/3 of my position at the time that I did. Rather than trying to catch the absolute top or bottom, selling into strength and buying into weakness are much more prudent ways to trade.