For well over two years we have been steadfast in our downside projections in gold, silver, the HUI Goldbugs Index, and VanEck Vectors Gold Miners ETF (GDX). This sector offers tremendous upside, but if not managed correctly can cause damage to your long term capital. To say the sentiment that surrounds this sector is extreme is putting it lightly, and while the individual stocks within the mining sector offer huge upside, it is important to understand that they can fluctuate with such enormous amplitude that investors who approach it incorrectly can spend so much of their emotional currency trying to catch the move - before it commences - that they end up missing it when it finally occurs.
In this article I will discuss our expectations of the forthcoming price movements in the metals and miners sector, and describe our approach of how to position in this sector for huge upside without taking huge downside risks to your hard earned capital. Because we all know how we accumulated our capital, so let's not find out how we diminish it.