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« SQAURESPACE Comments Facility Still Not Available | Main | Gerald Celente Warns $6 Trillion Global Stock Market Carnage Just A Prelude To The Disaster That Lies Ahead »
Thursday
Jan212016

What drives the Mines - Commodities or the Market

 

This chart shows the gap that has opened up between Gold and the Gold Bugs Index (HUI)

It begs the question; Are the precious metals miners following their underlying commodities or are they following the stock market in general? When there is a sell-off in the markets investors are looking to raise cash and if the mining stocks are well bid they will be sold off regardless of what gold and silver are doing.

Mine management, Ounces in the Ground, Exploration, Geo-political threats, Infrastructure, Central Bankers, Inflation/Deflation, Currency Fluctuations, Regulations, Permits, Environmental Considerations and many more factors go into the investment decision making process.

The point being that just because gold goes up don't expect the mining sector to automatically follow suit.

 

Sleep tight. 

Stock Trader currently has the lions share of its funds in USD in readiness for a U-turn in the precious metals sector, when stock selection will be critical to the generation of profits.

 

If you would like to know which stocks we are buying and selling please join us atStock Trader our premium investment service.

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