Buy gold
The next step in trying to make some money from oversold precious metal & mining stocks is to buy some gold: I bought some via the Benchmark Gold ETF - GOLDBEES @ 1175.
[Yes, I managed to get in a good entry compared to today's range - only because I had put in a limit order all day. Also, very good entries on longs usually mean the thing is headed down. 
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Why go long now?
- Oversold technicals
- ‘Bargain buying’ by jewellers
- Sentiment
- Overbought dollar
- Because mean reversion works well (sometimes).
Risks:
- Oversold can get more oversold
- Oil & industrial metal down-trends take gold further down with them
- Indian farmers don’t buy gold this year, and instead go shopping at the South China Mall
My target is a 8%+ return on gold & 15%+ return on gold mining stocks, within a few weeks. Let’s see if this experiment succeeds.
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