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.
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 at ‘Stock Trader’ our premium investment service.
Subscribe for 12 months with recurring billing - $199
Buy 12 months of subscription time - $199
If you are new to investment in the precious metals sector then you can subscribe of our FREE newsletters regarding gold stocks, silver stocks and uranium stocks, just click on the links and enter your email address and we will email you our articles along with other interesting posts.
Please remember to check your spam folder once you have subscribed to ensure that our verification email has not gone astray and you are getting our emails.