I'm frustrated as
hell regarding my core mining positions (held for the
long-term) and as baffled as the next investor. Gold mining
shares drop when the price of gold tails off and, as
evidenced by the action this past week, the mining shares collapse
when the price of gold soars. Does manipulation of any
sort play a role in the miners? If not, why is there no
scenario that seems to push these stocks higher?
I understand the charts and
technical indicators are horrific at the moment,; I'm trying to
understand why.
Mining shares have
underperformed the general market as the market moved up, and they
now sell off to a greater degree as the market tumbles...all as
gold moves $50.00 to the upside. The miners should represent
a leveraged play on the underlying metal. No manipulation you
say; then what? Their movement has been completely irrational
for at least 4-6 months.
Anyone have a plausible
explanation they can share?
Posted by dallassteve on 8th of Aug 2011 at 06:49 pm
yeah, I'm frustrated, too. I am a believer in gold long
term. Of course, GDX and miners act differently than gold,
which is why we can use a GLD:GDX ration to trade., Not that I am
saying I am good at it. My wife's IRA is in Vanguard Gold,
which is the miners. I sold all shares in April at the top,
expecting a big correction. I have not bought back in yet,
but let's see how it goes. I think gold miners have a bright
future, but they are stocks, so timing is important.
On the other hand, I have been buying gold coins since 1999, and
have never sold one of them. This is my backup in case
everything melts down. I stopped buying at $1000, and am
kicking myself now.
Lots of frustration to go around. If you find any
insights, please share.
Seeking a plausible explanation for the movement of the gold mining stocks..........
Posted by RichieD on 8th of Aug 2011 at 04:53 pm
gold and miners
Posted by dallassteve on 8th of Aug 2011 at 06:49 pm
yeah, I'm frustrated, too. I am a believer in gold long term. Of course, GDX and miners act differently than gold, which is why we can use a GLD:GDX ration to trade., Not that I am saying I am good at it. My wife's IRA is in Vanguard Gold, which is the miners. I sold all shares in April at the top, expecting a big correction. I have not bought back in yet, but let's see how it goes. I think gold miners have a bright future, but they are stocks, so timing is important.
On the other hand, I have been buying gold coins since 1999, and have never sold one of them. This is my backup in case everything melts down. I stopped buying at $1000, and am kicking myself now.
Lots of frustration to go around. If you find any insights, please share.
Gold Stocks
Posted by mcpp on 8th of Aug 2011 at 05:14 pm
You may want to try this site, in particular the John Ing interview.
FSN discuss gold stocks and why they are not moving, quite often.
http://www.financialsense.com/financial-sense-newshour/guest-expert/interviews
and I'm in the same boat - going on 7 + years