WB buying a gold miner is a bittersweet moment to those that have been investing in this sector for a while now. On one hand I feel vindicated on my macro call on gold/gold companies. On the other hand, I know that we are close to gold miners acting like drunken sailors thinking that the good times will last forever...again.
The success of a miner sows the seed of their own demise because human nature is prone to over investments during good times. Gold is a cyclical commodity afterall. The day everyone jumps into gold/gold miners is the day I realise I can no longer buy them for a good price and it is time to wait for the bottom of the cycle...again.
Right now I'm sitting back and enjoying the show as all the hard positioning have been done. Definitely not the time to be sowing seeds nor is it the time for harvest... No not yet but I know I'm closer to harvest than ever in this cycle.
