I was looking today at the GLD etf and comparing it to the miners. PAL is up 4.4%, NG is up 5.6% while GLD is up 1.1%. For every 1% move in GLD, which miners will move at least 4%...
Which ones are painful to read? Let me illustrate in pictures what I posted today. I liked JBLU...still up on the day although a little pullback. I liked the miners and gld...still up. I hated Apple...falling through the traps. Has anything I said today not been accurate? Out of the stocks illustrated below, which ones would you take into the weekend long and which ones would you just soon be left out of? There are 3 stocks below that I would risk holding into the weekend and 1 stock that I would just rather be short...care to take a guess which ones I would long?
Here is the reality of gold and silver miners. In the below diagram, you have the $XAU. In the blue shaded area, gold was 10-20% cheaper then it was now. Gold seemed to be strong today and I believe is in the process of breaking out. So if the miners are at the same level in 2008 with more expensive (rising) gold AND more efficient operations (most companies have trimmed the fat from their operations), then the miners are a bargain right now. This big V pattern you have seen before on charts and so you know that sometimes it can lead to a much larger breakout. How much larger? The $XAU could double in the next year or so if gold were to make another advance. The miners have trimmed the fat, laid off people, and cut expenses while the product they push is going up up up. Paulson...the same guy who shorted the banks during the financial crisis and then longed the banks in March of 2009...has set up his own gold etf and piled into NG Novagold. I see NG going back to its 2007 levels if not higher. The volumes we are seeing on NG, EGO and even the small-time miner PAL is greater now then at any point in time they have ever traded. A little hint for ya...the price of Palladium is now nearly as high as it was in 2008 and Gold is way higher. So what does that make PAL? Keep twirling it around in your minds and trolling my post saying Im nuts. These stocks are advancing on HEAVY LIFETIME HIGH VOLUME...
No need to cry nutty. I'm not sorting through your garbage. To say the miners are leveraged to the price of gold by 4 times is STUUUUUUUUPID.
Just buy GDXJ. Outperforms 50% of the miners out there and offers enough downward protection due to it's wide index to be prefered above individual miners.
Im not the one who took a loss in 2009. So who is stupid? and before you say you didnt, how about we see a brokerage statement out of you? If you dont have statements, then you dont trade so shut the fuck up. You wouldnt have the guts to come here and say that to my face because I would beat the shit out of you asshole.
This is a real affect. If gold is $1200 per ounce and it costs the miner $500 per ounce to mine it, they net $700 per ounce. If the mining cost stays the same and gold goes to $1500, a 25% increase, the net goes to $1000 about a 43% increase. This is closer to 2 to 1 but you get the idea.