What drives the Mines - Commodities or the Market
Thursday, January 21, 2016 at 04:30PM
Gold Prices

 

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. 

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Article originally appeared on Gold Prices (http://www.gold-prices.biz/).
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