Tuesday, February 07, 2006

A tough day for gold

Gold is taking it on the chin today. As of this writing, it's down $18.70, silver is down $0.35, and the HUI is down over 7% to 316.5. This is why it takes an iron stomach to be a PM investor/trader! I was expecting the 325 trend line support level to offer some down side resistance. It did in the morning, but selling accelerated after the lunch break. I duely entered sell orders for SGDAX and the rest of TGLDX today. After this trimming, the PM sector will still take up approximately 20% of my active managed portfolio. While I still believe one last spike-up is possible, I have to maintain the discipline. I'm selling the mutual funds first as they are not ideal vehicles for shorter term trading.

A core holding of PM equities will be kept no matter what. For now that list includes: UNWPX, NEM, SSRI, NG, and some SLW. CEF is a maybe, I like the relative stability of bullion but the current high premium can evaporate in an instant if the new silver ETF is approved.

Best luck to all!