Our binding profit-take level for the GDX ETF was just reached - it was $27.88 and today’s high (so far) is 27.93. Consequently, the profits were already taken off the table. If they weren’t, this is the confirmation that we think that they should be taken off the table in case of the mining stocks.

Now, the question is if we keep the positions in gold and silver open, or do we take profits off the table in their case as well. In short, that depends on one’s approach, but overall we think that it’s worth taking profits off the table in case of gold as well. Today’s intraday high was $1,487.65 (so far), which is less than $3 away from our exit price. The more risk-averse subscribers might want to take profits in silver as well.

However, those who would like to squeeze the most from this rally and accept higher risk (which will not be appropriate for most people), might consider leaving the silver position intact or even move some (or all) of the profits from mining stocks and gold to the silver part of the trade. The reason is that the white metal is likely to outperform gold in a clear way at the very end of the rally.

We will leave the silver position open in our Gold & Silver Trading Alerts, but please keep in mind that it’s definitely not obligatory - it’s for those who are most risk-tolerant.

We plan to close the remaining long positions in silver and enter the short positions shortly thereafter (or at the same time).

As always, we will keep you - our subscribers - informed.

Thank you.

Sincerely,
Przemyslaw Radomski, CFA
Editor-in-chief, Gold & Silver Fund Manager