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Tuesday, July 30, 2013

Gold Miners Should Be Back on Your Radar



April 14, 2010 by · Leave a Comment 

prieur du plessis Prieur du Plessis submits:

Ever since I started my investment career as a mining analyst in 1984, I have taken a keen interest in gold stocks. In particular, I always keep a close eye on the relative strength of the miners versus the metal as stocks often lead bullion.

The chart below has been constructed by dividing the MarketVectors Gold Miners ETF (GDX) by the streetTRACKS Gold Trust (GLD). A rising trendline indicates outperformance by gold stocks against bullion, whereas a declining line shows the metal having the upper hand. After a period of underperformance from March to October 2008, the miners outperformed bullion until the beginning of the year but have since been marking time in similar fashion to the metal.

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