A month ago, I began a second investment game with two of my pals. I won the previous game, which lasted about 8-9 months. Anyways, in the current game, I exited from 60% of the gold miner positions this past Wednesday. Gold in my eyes just has gotten extremely close to the end of its parabolic move, a type of move that just is not sustainable in the long run. I think there will soon be profit-taking and people realizing that they are participating in a precarious bubble. (click for larger image)
Since just the beginning of November, the mining stocks in my game portfolio have risen by25% to 50%. In a year, the price of gold has risen from $700 to nearly $1,200.
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