Short-term Precious Metals Investing

I’m a bit leary of recommending current continued investment into precious metals. The speed at which funds have flowed into and out of physical gold and silver is alarming. Now is the time to begin bargain research for gold and silver equities. I believe there may be a chance for gold to drop back to $750 and for silver to drop back to $14 levels. Investors who accumulated shares of gold and silver miners prior to the last two Fed rate cuts should be holding onto a profit. I would recommend selling half of your positions to lock-in some gains before the end of the year.

We are now in the middle of November and trading tends to be thin in December as we head into the holidays. Gold and silver have both met my 2007 price targets of $800 for gold and $15 for silver.

If gold rises above $830 and silver rises above $15.50 I would re-enter your equity positions. I believe there will be a volatility discount applied to precious metals equities as investors debate whether precious metal prices will stabilize and continue rising into 2008. You shouldn’t lose much in term’s of percentage gain by selling now and waiting to see how precious metals prices react in December, 2007 and January, 2008.

I sold my positions in Pan American Silver [[PAAS]] and Silver Wheaton [[SLW]] and I am waiting for attractive re-entry points.

CDE and UXG Update

Following my October 29th, 2007 article on US Gold Inc. [[UXG]] and Coeur dAlene Mines Corp. [[CDE]], UXG hasn’t followed through with the chart analysis I posted, while CDE has risen dramatically.

Both stocks have fallen in-line with the overall drop in gold and silver prices. UXG continues to be a speculative exploration investment with strong experienced management running the company. I expect the stock to move in-line with the direction of gold prices.

CDE has recently been upgraded by JP Morgan Chase and I suspect institutional investors are developing interest as the company replenishes its silver reserves. Couer is anticipating to be the world’s largest primary silver producer after the acquisition of Bolnisi Gold NL and Palmarejo Gold and Silver Corporation.

CDE has been a top pick of mine and I have posted previous Coeur dAlene Mines Corporation analysis over the past year.

*Disclaimer: The author owns shares in CDE and UXG.

Raw Greed Site Upgrade

Raw Greed has undergone a redesign. I’ve been using the old layout, a modification of the default Kubrick theme, for almost two years. There will be a few fixes while I determine what works and what doesn’t following the upgrade.