Commodity Stock Picks

Buy and Rotate

Before showing the charts of single stocks, I will show you how my Anti Currency Debasement Portfolio is constructed, and why:

Although it is now a bit less clear than two months ago, I am running a Core & Satellite Strategy.

Starting out with three Big Blue Chips in their Domain: Exxon Mobil, Barrick Gold and Glencore.

I had all of them at 20% when I started this. Along with 30% Gold, and small positions in the satellites: Aya Gold, Vital energy (Laredo Petroleum) and Southern Copper.

I also had a small position in BTC as the ultimate Debasement Hedge.

When Gold really started going and I was more sure of a Bull Market in Precious Metals I began selling Gold to add smaller Gold Miners.

Glencore on the other hand did so awful that I had to reduce it and I bought Peabody Energy, a Coal Producer. Glencore also made 50% of its earnings with Coal last year.

So it is not just a Play on Copper, but also on Coal.

Laredo Petroleum also continued to fall, but I have high conviction that it will be one of the most stellar performers in the Oil and Natural Gas Space with its great assets in the permian basin.

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Silver Breakout last week…

Since Silver is now ripping, I have and will continue to sell Barrick Gold to buy more Silver Miners and also started to buy a Platinum miner.

I think they will follow now, and the percentage gains of these miners that have operated on awful margins with a depressed silver and platinum price will be quite a surprise to many equity investors.

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More aggressive Goldminers:

SSRM

ORLA

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Silverminers

VZLA

HL

AG

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These assets are really hard to trade, with a lot of chop and not much respect for technical levels or moving averages.

That is why I tend to “invest” in the commodity space, trying to find multi month bases and get in early to not miss the breakout.

Playing these miners like tech Growth stocks with tight Stop Losses will probably result in many losses, because of the gap downs, often much bigger than anticipated.

It is very important to be aead of the curve, that is why I will wait for a dip to add Silver Miners and rather concentrate on Platinum and Palladium miners right now, to build positions before they blow up:

RPHA

SBSW

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Hope you enjoyed this, and let me know in the comments if you have anything to say about this content or want me to take a look at something.