Ouch, page-85

For my mind, it's US gold funds indiscriminately selling Australian producers due to their listed entities consistently being thrashed over the past month. We need to remember that listed vehicles like GDX/GDXJ operate like index funds that for a large part are passively managed. When forced to sell they proceed across all of their holdings and don't pick and chose through a bottom up process. Despite the fundamentals, their actions cause downward compounding pressure that kicks off profit takers, momo traders, shorters, fear sellers etc...the fundamentals give way to the volume event until the US funds either turnaround or run out of stock for sale.

I know someone here tracks the individual flows of the GDX/GDXJ and I'm sure it would be helpful in backing up my statement (please post if you are still around and tracking the data). Until we see the turn in US gold indexs we'll probably have continued selling despite our positive fundamental views of NST - although, this all works in reverse and we never complain then even when it shoots past our wildest valuations.