iBankCoin
Full-time stock trader. Follow me here and on 12631
Joined Apr 1, 2010
8,861 Blog Posts

Gold vs. Silver vs. Miners

I beganĀ my video market recap last evening developing an idea that I had discussed for 12631 members two weeks ago. Essentially, the point was to be on watch for a dislocation between silver miners and silver, since it has become such a hot and crowded trade over the past few months. Moreover, we wanted to be on watch for the gold miners to reemerge after lagging the silvers over the previous quarters as a whole.

I am aware that there have been plenty of headlines relating to many individual silver miners over the past few days. However, while we keep gold miners on watch for strength, it is tough for me to cavalierly dismiss the fact that silver is screaming higher while the silver miners struggle to barely hold their most recent breakout. Until this divergence resolves, I am taking a hands-off approach to the silver miners.

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13 comments

  1. Superpositron

    Hard to get in on the long and certainly harder to short. Standing aside for the time being – being the prudent approach.

    Important divergence you highlight.

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  2. Hawaiifive0

    Thanks!

    Reduced my positions from 79% of the port to 28%. Will add back if the dollar bounces and starts to fall again. This divergence is definitely telling us to become more cautious during the upcoming week.

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  3. TrendRida

    I haven’t looked at the data in awhile, but the last time I checked – except for a few instances Miners have underperformed physical since the release of the GLD. Before GLD the only way many of the big boyz could play Gold/Silver was thru the miners. IMO, the biz risk of the miners offsets the leverage possible vs the physical. PAAS case in point. SLW CEO resigning with no notice is another. HL environmental problems and on and on. Obviously the shorter you swing the less important the biz issues are….

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  4. Jakegint

    As you can see by my moves in the PPT, I’m agreuuuuud.

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  5. GYSC

    The miner plays I have tired were more like naval mines, ugh. What’s that Alice in Chains song, “I Stay Away”?. That will work.

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