Why I’m Selling Some Gold Stock

Nick Hodge

by Nick Hodge
Nov. 17, 2020

  I made a list this week. 

The kids have made their lists, too. 

And while theirs are on their way to the North Pole, mine has more to do with Vancouver.
I’ve written a lot of checks into private placements in the resource space over the past few years in anticipation of the bull market we’re currently in. And I’ve been fortunate to do very well in some of those positions. 

At this juncture, I found it prudent to reevaluate, cull, and concentrate. 

What is this juncture, exactly? 

It’s a consolidation period in gold and gold equities after a very significant rise in gold (up 28%) and gold equities (up 36%) over the past year. 

The dollar is also consolidating between 92 and 93. 

The narrative is there for gold to go higher: rampant debt and money printing, and more of it on the way. 

But reality doesn’t care about that narrative right now. What it seems to be pricing in, with the S&P 500 at all-time highs and the 10-Year bond yield ripping higher, is some sort of economic recovery — at least for the next quarter or two. 

Have you looked at bond rates lately? Since gold hit its record price in August, the US 10-Year is up as much as 77%, from 0.55 to 0.98. It might soon yield a whole darn percent!

You know what doesn’t yield anything? That old pet rock.

And so as long as rates are strengthening it’s gonna be a tough go for gold. 

That doesn’t mean this gold bull market is over. And that doesn’t mean we won’t see record gold prices again in 2021.

But what it does mean is the gold trade is clearly on pause. Another word for a pause in market parlance is consolidation. 

Will gold consolidate to where it has been recently in the U$1,860 per ounce range? Or will it consolidate lower, down to its next rung of support closer to $1,800? 

I don’t know. 

That “I don’t know” is why I made my list. It’s a list of three gold stocks I’m going to sell that represent a small 4% of my overall precious metal portfolio. 

And because I bought them all via private placement, I have warrants to buy more in two of the three should I be wrong and they move higher. 

Getting access to good deals is tough. We’ve made it easy. 

The Hodge Family Office was created for one reason: to source and vet private deals for high net worth investors. 

No crowdsourcing. No “Reg D”. Only private placements in high quality mircocaps with a clear path to exit. 

These are the same deals Nick and his networks have used to make thousands of percent. All the details are here.

I reevaluated... 

I’m culling... 

And I’ll concentrate in the names I really like for when the next leg of this gold bull comes. 

Plus it’s never a bad idea to have a bit of cash. 

If not to rotate into names and sectors that are performing well (have you seen lithium stocks and bitcoin lately?)... 

Then certainly to buy some Christmas presents. 

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.

*Follow Nick on Twitter.