Trim Profits and Hedge Precious Metals Exposure (GDX & Silver)

about 1 month ago

Mike

"We rebalanced to our model weight of 10% and took chips off the table by hedging half of our precious metals position with a covered call out to November. If you are overweight, say more than 15-20% in metals, consider selling some into this ramp while the sentiment remains extremely rich."

The panel discusses the recent run in precious metals and gold mining stocks, notably GDX, which has advanced significantly from its base. They suggest that investors who are overweight in these assets should trim some profits by hedging via strategies such as selling covered calls. The commentary points to technical indicators (e.g., GDX trading below the 21-day moving average) and set targets (potential to reach levels around 100 for GDX and an all-time high near 50 for silver), which makes this an actionable tactical move for managing profit and risk.

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