I've been debating lately whether to take some profits on some of my precious metals investments (mutual funds, DBS) lately, outside of USSIF which I'm holding tight for the big return on. Short term there is a case to be made for some short term profit taking. Silver has gone close to parabolic lately, which is never a good sign. QE2 is scheduled to end in June. The last time QE1 ended, stocks and commodities, including precious metals, corrected sharply. So from a short term standpoint, there is a case to be made for a correction. At the same time we've got these larger factors which could propel precious metals, especially silver, much higher in the short term.
Outside of short term considerations, because I still believe the longterm prospects are much higher, I am leaning against taking any profits on my precious metals holdings and just riding out whatever comes in the near term. I expect a bumpy ride. I don't think we'll see the smooth upward trajectory we've had lately in silver prices.
As for USSIF, my biggest concern for any low priced stock is always a reverse split. The late reporting is aggravating and probably creating anxiety in investors which is holding down the stock price. But the potential here remains enormous, and if silver prices continue to rise, I don't see how this thing can be a loser. But under no circumstances (even listing on a bigger exchange) do I want to see a reverse split here.
AI
