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Gold Miners Take Off While Financials Sink

"This does not seem like an auspicious setup for the broader market. Bets on gold mining stocks are commonly taken as a bet on general chaos, while bets on financials are a bet on economic growth and stability. The fact that the former is at a new high and the latter is at a low seems troubling."

https://sentimentrader.com/blog/gold-miners-take-off-while-financials-sink/

Comments

  • Prescient.
  • Howdy folks,

    [the choir singing]

    The nice thing about investing these days is that we have a lot of choices and investment vehicles. Most PM funds only invest in mining stocks and not bullion. You have some ETF bullion funds but I consider them to be trading vehicles and NOT investments. It's all a paper bullion game of musical chairs and the music is going to stop one of these days.

    So i prefer either PM mutual funds or ETFs that invest in the miners. They have them for large caps or juniors and gold or silver.

    Of these choices, I prefer silver and junior miners with SILJ but also like junior gold GDXJ. It's all about leverage as miners have more than bullion and silver has more than gold. At least that is what I've seen in the Hunt Bros rally in the late 70s and the Big Bonanza of 2002 - 2011.

    And so it goes

    Peace and Flatten the Curve

    Rono
  • edited May 2020
    Fyi -Gold have been on a tear 10-20s%+ return past few months
    maybe mid-long term returns could be questionable indeed if equity market bounce back

    https://www.google.com/amp/s/seekingalpha.com/amp/news/3572185-gold-etfs-already-annual-inflow-record
  • edited May 2020
    For the immediate future my money is on yellow/gold miners and has been since February.
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