Been watching price action on these Gold/Silver mining stocks for quite sometime and I believe that they are due for another breakout. I personally feel that $1600+ gold prices are not temporary and we will be seeing them for years to come. Valuations on these mining stocks all seem to be calculated on much lower spot prices, once these higher prices are accepted to be the norm and not a temporary spike I think that we can see a doubling in these stocks. I believe there is still shorting of the miners as hedging as players buy the gold futures but eventually that trade will stop working when the miners catch up and I believe these stocks may outperform the physical asset over the next 1-2 years. Of course a collapse of gold prices again to sub $1600 can have a very negative affect on these stocks but as long as the bid support is out there I can sleep a whole lot better being long the miners than any other equity right now. Just compare a 6 month chart of Newmont, Randgold, Yamana and many other miners to the S&P, the decoupling is a good sign in my opinion. Was wondering what others thought about the gold/silver miners.
There's a great website with tonnes of articles on gold and silver juniors. FinancialSense. They have a weekly pod cast that is pretty good and they release smaller cast during the week. Good luck.