Skol again ....
"Check out all the others that have crashed over the last few months.
The Market Vectors Junior Miners Index is down 25% in 2011.
XGD is down 16% in the last year
XMM is down 23% in the last year."
First of all most junior miners are non producing speculative ones. Doesn't matter what they have certified, the market will value them as high risk because in anticipation of a fiscal crisis fully unfolding these miners will have problems raising cash in that era. Secondly most aren't primary gold stocks so from both points they hold no relevance in this debate.
Again the XGD is made up of both producing and non producing gold miners so its not a true reflection of what that particular equity market sector is predicting. If you want a better indication you only need to look at the performance of all the producing gold miners over the last 12 mths, that particular sector is a much more accurate sentiment predictor. The performance of the last 12 mths is bullish on gold, but its still not fully convinced!
.... and please it amateur to say the least by looking at the performance of any sector over the last few months to get insight of long term market direction.
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