Oliver Gross' explanation as to why he liquidated his portfolio of precious metals miners today:
"The last days for precious metals miners have been just shocking. The most important gold and silver miner indices and ETFs broke their support lines and hit new multi-year lows. Just imagine that majors and multi-billion dollar companies like Yamana Gold and Goldcorp had double digits losses during the last trading session.
"I had to liquidate the whole portfolio today to protect my subscribers, which is my responsibility. The market letter is owned by the publishing house and they have special risk and money management rules. The losses during the last weeks were so big for many subscribers that I was forced to react, which lead to complete, temporary liquidation of all stocks in the market letter. One of the toughest decisions in my career—to dump some of the best-in-class stocks at multi-year lows with depressed sentiment when, fundamentally, nothing has changed. But the market can be just brutal and it isn't smart to fight against all odds.
"The miners are clearly anticipating that Gold will break through the crucial support at $1,180/Oz. As always, I have to deal with probabilities here. Last week I mentioned in the interview with The Gold Report that I see a 50% possibility that Gold will fall to $1,050-1,000/Oz; now the possibility is above 75%. When gold will make this panic move and fall to 1,000 bucks, it's obvious that we'll see total capitulation in the miners space, which could have started today.
"Of course, I plan to buy gold miners again when the dust has settled and we see something like a bottom and a bottom-building process. At the moment, I have to deal with the potential for further blood baths as I can't see lights in the end of the tunnel yet."
"I had to liquidate the whole portfolio today to protect my subscribers, which is my responsibility. The market letter is owned by the publishing house and they have special risk and money management rules. The losses during the last weeks were so big for many subscribers that I was forced to react, which lead to complete, temporary liquidation of all stocks in the market letter. One of the toughest decisions in my career—to dump some of the best-in-class stocks at multi-year lows with depressed sentiment when, fundamentally, nothing has changed. But the market can be just brutal and it isn't smart to fight against all odds.
"The miners are clearly anticipating that Gold will break through the crucial support at $1,180/Oz. As always, I have to deal with probabilities here. Last week I mentioned in the interview with The Gold Report that I see a 50% possibility that Gold will fall to $1,050-1,000/Oz; now the possibility is above 75%. When gold will make this panic move and fall to 1,000 bucks, it's obvious that we'll see total capitulation in the miners space, which could have started today.
"Of course, I plan to buy gold miners again when the dust has settled and we see something like a bottom and a bottom-building process. At the moment, I have to deal with the potential for further blood baths as I can't see lights in the end of the tunnel yet."
Quote:
Top German letter writer dumps all junior golds
Link: http://ceo.ca/2014/10/30/top-german-letter-writer-dumps-all-junior-golds/
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