cwgii wrote:so , we are supposed to hold for awhile ?
I don't know how to answer that question for you as there are a number of factors. How badly do you need the money? Do you have a spouse or neighbor getting on your case to get things cleaned up? If your health situation isn't the best, do you have someone who would step up in your place (if you were unavailable) to convert the metals to cash?
All that said, I personally expect that copper will go back to $3 or higher in the next 2-6 months (from $2.73 now). Think about it this way. We had nice runs on a number of base metals where they hit, say, 3-5 year highs in the past 2-4 months or so. This applied to copper, nickel, aluminum and zinc. I remember a stock trader that I knew back in the day saying one of the safest times to buy a stock was on a pullback after a breakout. Isn't that exactly what we've gotten here? I know you could always argue that stocks are different from commodities, but charts showing the price activity for both show patterns that many choose to trade on. In this case, it is the pullback after a breakout. I can give you an example of a stock that recently did this and it is Advanced Micro Devices (Ticker: AMD).
In early 2017 AMD hit $15+ for the first time in over a decade. This was definitely a major breakout. By May it went down to around $10 a share, even though nothing was really wrong with the stock. It went back up to $15ish over the next couple months or so and then back down to $10ish again. Twice! It went to $10ish (even a bit below) in December of last year and again in April of this year.
Finally in June the stock broke decisively above $15 to a new high, yet still not anywhere close to the all-time high. In June it his $17+ before pulling back to $15ish in early July. That was a gift of a buying opportunity for anyone who follows this stock closely. Today it closed at $25.26, up another 5%. I'm not saying to buy the stock at this point, but this is a great example of what buying a strong performer after a pullback can do.
Also, a note of caution. I am definitely not a believer in buying something just once. I think that those who can take modest initial positions (rather than going all in with everything they've got) stand a much better chance of doing well over time.
This is a roundabout way of saying that I am still bullish on copper (and frankly nickel too). Silver will some day have its day in the sun, but silver is something that can do poorly for many years and then move really fast to the upside for perhaps 3-9 months. I don't see any signs that silver is wanting to go higher at this time.
Former stock broker w/ ~20 yrs. at one company. Spoke with 100k+ people and traded a lot (long, short, options, margin, extended hours, etc.).
NOTE: ANY stocks I discuss, no matter how compelling, carry risk- often
substantial. If not prepared to buy it multiple times in modest amounts without going overboard (assuming nothing really wrong with the company), you need to learn more about the market and managing risk. Also, please research covered calls (options) and selling short as well.
