Good question Richie. My view on mining stocks is that they are
not a good long term hold. Coming from Australia, most of our
market is dominated by mining companies. You only have to take a
look at our various indices to see that we have really been under
performing the us market for the best part of this year. The mining
companies have relatively poor yield as well so they are not great
from the dividend perspective either. The share prices of miners
are very cyclical. I find that they are good to trade short to
medium term, but not good for a long term buy and hold strategy.
That's my take anyway. As for gold and silver, have you considered
buying etf's? That way you get exposure to the price of each metal
without having to purchase the physical.
yep pretty much roger, gold stocks are MUCH weaker than the
metal, that's not what you want to see them start to outperform.
PM stock have also been getting killed with earnings, this
has not been a good earnings season for anything, IAG was the
latest casualty yesterday. Since GDX is a composite
of all these stocks, was only a matter of time before it got nailed
too.
there is huge negative macd divergence on the daily chart - not
going away anytime soon by the looks of it.
it may be oversold enough at around 40 to start to show some
momentum change - maybe.
meanwhile DUST is a good way to play it - until negative
divergence starts to show up there. DUST / NUGT
are good ways to play the ups and downs b/c they move sharply and
when they reach o/b/s, will show divergence very clearly.
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Mining stocks
Important question about the gold mining stocks
Posted by payday on 15th of Nov 2012 at 08:00 am
Good question Richie. My view on mining stocks is that they are not a good long term hold. Coming from Australia, most of our market is dominated by mining companies. You only have to take a look at our various indices to see that we have really been under performing the us market for the best part of this year. The mining companies have relatively poor yield as well so they are not great from the dividend perspective either. The share prices of miners are very cyclical. I find that they are good to trade short to medium term, but not good for a long term buy and hold strategy. That's my take anyway. As for gold and silver, have you considered buying etf's? That way you get exposure to the price of each metal without having to purchase the physical.
sector looks to plunge in
Posted by roger on 15th of Nov 2012 at 08:12 am
sector looks to plunge in sympathy with the broad market
yep pretty much roger, gold
Posted by matt on 15th of Nov 2012 at 08:59 am
yep pretty much roger, gold stocks are MUCH weaker than the metal, that's not what you want to see them start to outperform. PM stock have also been getting killed with earnings, this has not been a good earnings season for anything, IAG was the latest casualty yesterday. Since GDX is a composite of all these stocks, was only a matter of time before it got nailed too.
gdx
Posted by roger on 15th of Nov 2012 at 09:26 am
there is huge negative macd divergence on the daily chart - not going away anytime soon by the looks of it.
it may be oversold enough at around 40 to start to show some momentum change - maybe.
meanwhile DUST is a good way to play it - until negative divergence starts to show up there. DUST / NUGT are good ways to play the ups and downs b/c they move sharply and when they reach o/b/s, will show divergence very clearly.