To Tim Seymour: Yeah I Bought Gold At The Bottom

On September 2016, there was a fantastic exchange between CNBC commentator Tim “All Is Well” Seymour and Bill Fleckenstein.  In it Seymour mocks Fleckenstein for his bearish views and then says, “yeah and I bet you bought gold at the lows right?”.  My views run more towards Fleckensteins and less toward Seymours.  Aside from the fact that it has been annoying to watch a guy like Seymour – with that shit-eating grin and beady little eyes – be right merely because the Fed has targeted stocks to stay high, I just have to reply, “Yeah Tim, I did buy gold at the low.  And Silver too.  And Miners.”

I started acquiring gold mining stocks in May and June of 2015 actually prior to the low, mostly by writing puts against them.  I bought some silver futures contracts with a 13 handle and have been rolling them over ever since.  They now are mid 17s after running to over 21.  By writing puts and doing a little bit of outright buying I have about 2.5% of the portfolio I manage in mining stocks and etfs.  Here is a list of positions with their basis:

  1.   ABX:  9.34
  2.   AUY:  2.93
  3.   GDX:  13.20
  4.   GGN: 4.57
  5.   GLD:  103.56
  6.   NEM:  18.63
  7.   SLV:  13.92
  8.   Silver Futures:  Mid 13 Handle

Oh, and the basis quoted above is actually much too high because it does not take into account all of the premiums I collected selling the put options, quite a substantial amount.  So Tim,  stick those in your pipe and smoke it, jerk.  I think like Fleckenstein and I bought gold and silver right around the low.   I am buying more on this consolidation.  I can not wait to see that grin wiped off your face when TSHTF.

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