Hi loki01,I think you might have been talking about my post in...

Hi loki01,

I think you might have been talking about my post in regards to shorting #6639759.

I read a few articles in regards to hedge funds possibly being long on direct gold and ETFs and short on gold stocks as a hedge.
I then decided to see how some of the gold stocks in the XGD have been faring since the low of the gold price back in mid-dec 2010 when it hit 1330 and found some interesting figures which is why i said that it may have some merit.

Since mid december 2010 gold has risen from approx $1330 to $1500 today... a rise of approx 12%.

In that time the XGD has gone from 8034 to 8002 or -0.5%.

I also looked directly at the majority of large gold stocks and calculated the current % decrease over the same period gold has risen 12% :

AGG % price decrease since mid dec = -10%

ALD % price decrease since mid dec = -18%

CAH % price decrease since mid dec = -19%

CRK % price decrease since mid dec = -1%

EAU % price decrease since mid dec = -11%

IAU % price decrease since mid dec = -9%

KCN % price decrease since mid dec = -16%

NCM % price decrease since mid dec = -0.5%

OGC % price decrease since mid dec = -27%

PRU % price decrease since mid dec = -11%

RSG % price decrease since mid dec = -11%

SBM % price decrease since mid dec = -2%

SLR % price decrease since mid dec = -10%

TRY % price decrease since mid dec = -10%

One can see the large disparity occuring between the gold shares and the gold price... Im no expert in this area and there are several theories going around about why this is happening and at this stage they all seem to have merit.







ALD price since mid dec