There are lots of other factors that go into the gold stock bull case, but here is one that everyone learns in their first semester at Goldbug U. You buy the gold stocks when they are a value, not when they are loved. Over in the exploration patch, that goes double. And yeh, if you play over there you'd better pick the good ones too.
The HUI-Gold Ratio is looking for a double bottom to the 2008 bottom and is gently trying to turn up with a series of higher lows. Was early October the best it will get in this indicator of gold miner value vs. bullion?
People talk about what terrible investments gold stocks are and in 2007 they had a point. But if you understand the fundamentals of the sector you know why 2011 is different. I understand that people may need the validation of rising stock prices to change that perception, but I think there is a reason that HUI looks like this (monthly 'big picture'). No matter the whining and complaining to date, this is not a bearish picture, now is it Beuller?
People are drawing parallels to the 2008 topping pattern - which by the way formed above 'blue sky' support just as Huey is currently - but again, the fundamentals could not have been more different. Think 'real' price of gold my friends.
Gold and silver have reversed today as the goons apparently are on to other things after covering their tracks with a good old fashioned post inflation policy smack down of the relic. The miners have reversed as well and after being compelled to play risk manager I think maybe we can get back on track short term. This has been quite an annoying market lately, but the key is to survive and then just maybe, thrive. Truly, there have been times as a trader that I have not known when to manage risk, **** or get off the pot.
As this week's newsletter noted, clarity is coming soon. Like maybe very soon.
http://www.biiwii.blogspot.com
http://www.biiwii.com
The HUI-Gold Ratio is looking for a double bottom to the 2008 bottom and is gently trying to turn up with a series of higher lows. Was early October the best it will get in this indicator of gold miner value vs. bullion?
People talk about what terrible investments gold stocks are and in 2007 they had a point. But if you understand the fundamentals of the sector you know why 2011 is different. I understand that people may need the validation of rising stock prices to change that perception, but I think there is a reason that HUI looks like this (monthly 'big picture'). No matter the whining and complaining to date, this is not a bearish picture, now is it Beuller?
People are drawing parallels to the 2008 topping pattern - which by the way formed above 'blue sky' support just as Huey is currently - but again, the fundamentals could not have been more different. Think 'real' price of gold my friends.
Gold and silver have reversed today as the goons apparently are on to other things after covering their tracks with a good old fashioned post inflation policy smack down of the relic. The miners have reversed as well and after being compelled to play risk manager I think maybe we can get back on track short term. This has been quite an annoying market lately, but the key is to survive and then just maybe, thrive. Truly, there have been times as a trader that I have not known when to manage risk, **** or get off the pot.
As this week's newsletter noted, clarity is coming soon. Like maybe very soon.
http://www.biiwii.blogspot.com
http://www.biiwii.com
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