This Key Gold Relationship Has Changed

Nick Hodge
by Nick Hodge
The trend has changed.

What was an inverse correlation between gold and the dollar is now a direct correlation. 

This started right around mid-November, which is coincidentally when I told you I was selling some gold stock.
What you saw after that is the dollar sink to two year lows and take gold with it. 

Gold largely did not go up for all of the second half of November. Its action was instead controlled by bond rates, which have been rising.

This change in the action got all the gold permabulls questioning what the hell was going on. 

How can it be that they’re printing the you-know-what out of the dollar with another round of stimulus on the way… and gold is going down?

Especially when Bitcoin and copper and lumber and other commodities are ripping higher? 

Sometimes the market doesn’t make sense. 

But as someone once said, the market can not make sense longer than you can remain solvent. 

Or, as Mr. James Dines would say: Don’t think, look.

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So how am I positioning? 

I continue to sell gold stocks that I don’t want to go into the next leg of this bull market with. I have been using the resultant cash in various ways: 
  1. Buying more of the gold names I do want to own longer term on dips
  2. Holding it in preparation of warrant exercise for many positions that are now in-the-money
  3. Buying stocks in non-resource sectors that are in bullish trends 
In the past month I have sold some Barrick Gold (NYSE: GOLD) and some Wheaton Precious Metals (NYSE: WPM). 

I’ve bought some Revival Gold (TSX-V: RVG) and Chakana Copper (TSX-V: PERU) and IBM (NYSE: IBM). 

This gold cycle still has a lot to give. But you’ve got to use the buying and selling windows to your advantage.

Details on the how and why of it all are for members of our premium publications.

Call it like you see it, 
Nick Hodge
Nick Hodge,
Publisher, Resource Stock Digest
Nick Hodge is the co-owner and publisher of Resource Stock Digest. He's also the founder and editor of Hodge Family Office, Family Office Advantage, and Foundational Profits . He specializes in private placements and speculations in early stage ventures, and has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world.

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