Tuesday, March 10, 2009

All in on RGLD

Though I may be a little early, the risk to reward ratio has me all in on Royal Gold (RGLD) as of now via long 2010 LEAP calls.

I am waiting perhaps another day or two on GG for the 26 level (think it will bottom at the 23-26 range but will buy as soon as 26 is reached as I would rather be a week early than a day late on this one - it may explode out of the gate on day one of the rally).

Gold dipped under $900/ounce but I am waiting patiently. Remember that the gold miners usually bottom before the gold price so you typically get a day when the gold price goes down but the miners (using major indices like GDX/$GDM, $HUI or $XAU) are flat or up for the day as a signal. Since I already own physical gold, I am not in a hurry to get back in, but will be buying more in the next week or so. With gold miners, I am impatient to get back in so I don't miss the coming spring rally as my core miner holdings are light and I am primarily trading this bull via the miners.

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