Maintain Current Positioning and Open
Order to Buy RGLD.
Gold miners are perking up after the steep post-election selloff. And while the bullish case for gold miners is improving, now is not the time to go all in. Here’s why …
First, my AI Neural forecast model for junior gold miners is for a modest corrective setback into the second week of February.
Second, I’m watching for a close in February gold above $1,220 to solidify a bottom in the gold market. This should set the stage for a healthy advance into April.
Meanwhile, a lift in core inflation levels and a peaking U.S. dollar warrant owning gold stocks over the intermediate term.
So for now …
èContinue working your open order to buy a best-of-breed royalty mining company: Royal Gold, Inc. (RGLD). RGLD receives royalty streams from 38 producing and 24 development gold and silver properties.
In addition to yielding 1.4 percent at its current share price of $70.31, the company just made a final payment of its Rainy River gold and silver stream acquisition from last year.
My recommendation: Using 3 percent of the funds you have allocated to Income Investments, buy Royal Gold, Inc., symbol RGLD, on a pullback to $60 or better. When filled, place a good-till-canceled protective sell-stop at $51.33.
In the meantime, …
èHold Westlake Chemical Partners LP (WLKP) from roughly $19.75 … and maintain a good-till-canceled protective sell-stop at $18.07. Your position has open gains of 24.7 percent, including an annualized dividend yield of 6.0 percent.
If not on board WLKP, use 5 percent of the funds you have allocated to Income Investments and buy at the market. Be sure to place a good-till-canceled protective sell-stop at $18.07.
è You should be long shares in GAMCO Global Gold, Natural Resources & Income Trust (GGN) from about the $6.27 level. While trading slightly below your entry level, it sports a generous dividend yield of 11.1 percent.
Hold GGN, and maintain a good-till-canceled protective sell-stop at $4.21. Reinvest the dividends to compound your return.
If not on board, you may purchase GGN at the market, using 5 percent of your Income Investments funds. Place a good-till-canceled protective sell-stop at $4.21.
