This is a longer term view of how I approach buying gold miners. I currently hold AEM.
First I wait until a medium to long term bottom is suspected in the gold market. I use the Weekly and Monthly Coppock curve on gold to determine a probable bottom. A coppock curve can be added to a freestockcharts.com chart and a write up on the method can be found on Wikipedia with the variation adopted by Jerry Samet (the guy who writes the daily Leaders Index report).
Here is the weekly coppock on gold futures: Notice the buy signal depicted by a rise of at least one point off the trough formed below the zero level. Monthly coppocks are slow movers and usually signal late. The monthly coppock is in the process of forming a potential trough, the first trough since 2001. If the monthly signals it will be a major decadal low.
This chart is of AEM. Once I have determined that a gold low is forming I look for a liquid stock in the sector with a well formed chart pattern and positive EV divergence. AEM was purchased on the day that it passed through the 50-day moving average on pocket pivot volume.
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