This table tells you how the respective classes of PM stocks have been doing lately
Look at the last 2 columns
1) From 26/8 to today, about 3 weeks, Gold producers improved by an average of 9.6% but that is due to gold improving from $1920 to $1959 over the same period. But when tracked against 27/7 when gold was at $1960 where it is today, gold producers are still down by 11.5% , that is also reflected in the GDX down by 4.6% over the same timeframe.
2) But look at the gold juniors space, over the past 3 weeks, average gain was 14% and 11.5% since 27/7, except that was the average , and it is a mixed bag and you have to be in the right stock , 6 of those 37 tracked stocks had over 30% gains since 27/7 despite gold price not going anywhere and there is also two baggers.
3) While silver has been quiet off late, silver price is still higher than it was back on 27/7, and silver stocks retained their gains across the board with an average 27.6% gain since 27/7. But market participants after enjoying significant gains had to take a chill pill as silver stocks retraced an average of 2.9% since 26/8 despite silver price higher by 3%
This suggest that Gold juniors remain the space to be because it is (1) more resilient to changes in gold price volatility as its price movement is closer aligned to mineralogy prospects and (2) most of them have considerable head room to run to the upside, all needed are two ingredients (a) good mineralogy results and (b) a continuation of the gold bull rally to the upside.
And as for silver stocks, they will be back in play when silver starts looking towards reaching $30, until then market participants may be shying away due to the higher volatility in these stocks.
