.
If you don't mind a US listing, then the Copper Miners ETF, COPX, is worth considering. https://www.globalxetfs.com/fu...
Taking Kaz Minerals (LON:KAZ) private will be a loss, and this holding in the ETF will need to be replaced/re-balanced at some point.
PS: Watch out for a potential short term bounce in the dollar next week
M.
Thanks for that advice Macro and the steer on the Copper Miners ETF, COPX.
I'd missed it but looks to have great exposure to loads of the miners in my lists.
Here is a weekly Relative Rotation Graph of the Copper Miners against a benchmark of the Copper futures contract - which shows the position of your SOLG selection quite clearly:
And the noisier Daily RRG showing the SOLG pull-back and those with shorter term momentum.
And lastly SOLG showing it's recent bounce off the 61.8% Fibonacci retracement and it's Full Stochastic (14,3) getting ready to move back through 20.
Perhaps not the most obvious choice based on Stockrank, but an technical entry after a $USD bounce next week???
M.
also Central Asia Metals (LON:CAML) is worth a look I'd suggest.
cheers for the write up, I do think a bull market for copper may just be beginning..
re Solgold (LON:SOLG) they also have massive potential exposure to gold so a great hedge in the current environment as well as a possible take over target for the future imo.
also worth considering Power Metal Resources (LON:POW) for the exploration play list, they have several copper targets being progressed.
Hi Forbsy
I expect that you already have this point covered. But I will mention it in case you have not already taken it into consideration. Before you enter a position I would recommend that you have an an expected holding period in mind. At the end of the expected holding period you should decide whether you should hold or exit the position. Is the proposition behind your initial investment still in place? Have you made the gain that you expected? Have you any solid reason to keep holding ? What are your rules about whether to take your profits, keep your holding or cut your losses?
Perhaps you don't have a definite holding period in mind? Well that could be OK if you have other firm rules in which you would buy more / hold / sell.
Forbsy,
Presumably you have seen the Alex Hamer article in Friday's IC: High reward, but high risk?
M.
Thanks for a great analysis Forbsy. Copper is certainly looking strong at the moment. This is probably a good time to consider investing in industrial metals via their ETFs or ETCs and also to think about Rio Tinto (LON:RIO) and Anglo American (LON:AAL), which have both been in a tight band for the last 6 months and might well break out soon (I hold).
Thanks for all the feedback on £SOLG. Really interesting to see your charts Macro, superb!
WarrantStar, your point is well worth making and I can actually illustrate it well here.
My investment in Solgold (LON:SOLG) remains one of my largest holdings but I've been freerolling for a while having been a holder since 2014 after starting buying around the 4p mark, I've already removed my initial investments plus a nice profit. I have also added and sold at different times along the way, overall managing to add to gains, eg i sold a small amount into the recent spike after adding a little more around 25p and may try to rinse/repeat again following Macro highlighting the fib bounce.
My own journey in investing started around 2014 and having learnt a few harsh lessons about B&H strategies, I have returned to the scene a couple of years back with a number of new rules as you suggest! Definitely improving my overall performance. I am quite ruthless with newer positions now but happy give SOLG some room to breathe but it's prob also fair to say I have more emotional attachment to it than I should!
Agree the current infighting is holding things back but I remain optimistic over the longer term; as if the ore bodies were not excellent, would it be worth so much arguing about?
The funding aspect I think is down to the fact that the chairman Nick Mather is a large holder so I think he's trying to hold out as long as possible to get maximum value from any takeover, I see the latest drill campaign as an attempt by him to get the SP up before a fundraise.
Cornerstone only have rights to Alpala, SOLG targets elsewhere in Ecuador (100% owned) are showing greater potential than Alpala so it almost makes sense for him to shaft the other players at Alpala rather than dilute shareholders early doors with a raise at current prices.
Overall, my holding period will be indefinite for SOLG as ultimately expect a takeover by one of the big boys (or dividend payments!) to be the final outcome.
Thanks Wilkonz. Agree with you about the sector, do you have any specific ETF suggestions for industrial metals? I wonder even if it's worth asking Edmund Shing to do a piece on the entire ETF metals sector?
It's an area I'm not that familiar with but like you mentioned elsewhere, I'm coming around to see them as a very good idea for part of my portfolio too.
My choice for Nickel is £NICK. Your choice of CPER looks fine for copper. My other two holdings are SPDM and SSLN for palladium and silver (which are both industrial and precious metals). If you want to hedge all bets, I'd go with Anglo American (LON:AAL) and Rio Tinto (LON:RIO) which are poised to breakout substantially IMHO. (If you spread bet on IG then ETFS Copper looks pretty good too.)
And yes, I'd love to hear Edmund Shing's views on the metal markets.
