Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
For over the last year or so metals (GLD & SLV) have fallen and miners (GDX & GDXJ) have fallen even harder.
Over the last three trading days metals have shown weakening in upward pricing and even have recorded lower prices, yet miners have pushed higher. I realize three days doesn't mean much, but the disconnect seems worth noting.
I'd much rather buy PHYS or CEF (the latter still trading at a nearly 5% discount) than the miners if I was going to buy anything in this space, but that's just me. I really don't want anything to do with the miners. I was going to get Anglogold preferred convertible shares at one point, but I guess those were called? Oh well.
If you are buying miners as a trade, fine, but just watch for an exit point either way.
Agree with @scott, keep a finger on the trigger in this volatile sector. As long as Gold price is above $1200 or so, the miners draw in money and a lot of speculative money at the moment because everyone wants to catch the bottom in this beaten down sector. That alone sustains a rally until it doesn't unless Gold prices take off. But if Gold were to head down, miners can go down in a hurry.
Nothing is correlated on a daily basis except mutually inverse funds. Stop reading tea leaves on a daily basis if you want to preserve your sanity!
Reply to @cman: "Nothing is correlated on a daily basis except mutually inverse funds. Stop reading tea leaves on a daily basis if you want to preserve your sanity!"
This. Exactly this. Trying to focus on long-term themes/best ideas/income and not trying to trade and be "day-to-day" has been incredibly helpful to me.
Comments
If you are buying miners as a trade, fine, but just watch for an exit point either way.
Nothing is correlated on a daily basis except mutually inverse funds. Stop reading tea leaves on a daily basis if you want to preserve your sanity!
This. Exactly this. Trying to focus on long-term themes/best ideas/income and not trying to trade and be "day-to-day" has been incredibly helpful to me.