ION 0.00% 1.2¢ iondrive limited

It's funny that Van Eck have added SLR to their stable after...

  1. 390 Posts.
    It's funny that Van Eck have added SLR to their stable after previously picking them up....dumping them......de ja vu all over again. I'm a believer in rigged markets. Essentially the last 6 years have had the price of Comex digital gold (anything but a physical market price discovery means) is demonstrably and inversely correlated with the USD/JPY, primarily. With a lesser extent the 10 and 30 US treasury prices. Look at the charts yourself if you're sceptical.
    The reason that I bring this up is that all of the mining ETFs are in turn keyed off the USD POG, via hedge fund computer trading machines. The POG goes up or down, the HUI and GDX go up or down too ( except with a leverage factor of  roughly x3). The GDXJ is even more leveraged. If hedge funds inject money into the ETFs they in turn buy up NST, EVN, SLR, NCM etc. These GDXJ stocks, held by Van Eck are the stocks to own if you want instant gratification or misery from POG fluctuations. SAU is not a stock that is keyed into this market price action, therefore, it may not be for everyone.
    This has absolutely nothing to do with fundamentals. Everything to do with market cap size.

    I'll use the prettiest girl at the dance metaphor again (I think @solidbricks likes this one). SAU is a wall flower, at the dance, resembling a younger Audrey Hepburn. All the boys are cashed up and drinking. They ignore her because they notice she's dressed conservatively, she's also shy and slightly prudish and probably requires a bit of patience. None of the drunken idiots notice her, too much, because there is many more older "mutton dressed as lamb" types. The lads are reasonably sure of some instant gratification with these ones. One or two years down the track those boys are kicking themselves big time. Every choice or non choice is a gamble. Go with what you reckon's a good thing.
 
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