December 3, 2017
December 3, 2017


In Toronto on the way back to Mongolia…

Hi Kuppy, I notice in your last post on silver you talked about adding and selling based on the bollinger bands. Is this your favorite technical indicator? also, on silver it had been up against the upper ranges for awhile—what did you see there to get you to sell? does it have to pierce the upper or lower ranges for a buy/sell decision? any other indicators you really like? thanks.

There are lots of techincal indicators to use. I really prefer using sentiment as opposed to mechanical indicators. Bollinger bands are pretty useful only when something has made a big move from one band to the other. Generally speaking, I’m an investor and these indicators are too short term for my tastes.

Hi Kuppy, firstly thanks for this site and Q&A, its very useful. I’m a long time investor but only recently interested in mining stocks. I would like to ask:
1) When looking at mining companies, especially junior miners, what are the key things to look for? What are the best indicators for a successful investment?
2) You mentioned that your focus has moved away form mining stocks recently. Why is that? And what is your current area of interest?

1) There are 5,000 or more junior mining stocks. Most have no hope of being mines. Focus on those assets that are backed by groups who have successfully financed, built and operated mines in the past. There’s a reason that people buy and highly value Ross Beaty companies–those are the companies that make it. There are maybe another dozen groups that are successful. Everything else is rolling dice at best.

2) Mining is simply too hard to make money at. There are much easier ways to invest. In the end, most mining companies will never make it and when the financing gets cut off again, the share prices will once again collapse. I’m much more focused on macro themes, profitably growing businesses and countries that are experiencing rapid growth.

Kuppy, would you be willing to share any details or a contact person you may have on how to open a Mongolian bank account? For example, is it possible to do it entirely electronically? Which do you feel is the most trustworthy bank? Thank you for time and sharing your knowledge.

The best way to open a bank account is to simply walk into a bank branch. I didn’t do it electronically, so I wouldn’t know how to do it from overseas. I have friends who have succeeded and others who couldn’t get through the process, so I’m not sure what to say as to if it is possible. For banks, I’d recommend any of the larger ones as they tend to be much better capitalized than American banks. Why anyone would leave more than enough for groceries at Citibank when they can put money into a Mongolian account and use their debit cards in America simply baffles me. It’s probably worth the trip just to open an account–then stay for the scenery.

I am a long term investor not a trader. I believe the US will have to continue to monetize its debt and print money for the foreseeable future. I believe silver can be an interesting hedge to the coming inflation. Do you have any suggestions on how to own silver while at the same time minimizing costs.

I have friends with basements full of the stuff. It’s a pretty low cost way to store it….

I have seen many articles describing how China’s GDP is mostly construction based. Don’t you think that when they stop building stuff, the economy will collapse?

Firstly, China’s GDP has a lot more going on than just construction–have you ever been to a Wal Mart?

Secondly, have you ever seen Chinese construction? The stuff they built a few years ago is already collapsing and the concept of maitenance cap-ex hasn’t exactly gone mainstream. If they have to rebuild much of the infrastructure, construction can remain a big piece of GDP for decades into the future.