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Tuesday, January 22, 2013

Bullish on Miners

I have been waiting for WEEKS for a clear sign that Gold miners are a strong buy.
The best indicator I can muster is the mining sector has held firm from further declines in recent months.

Gary of the Smart Money tracker posted on his public blog that this time its different with miners.
An indicator, a mild one, is that this time instead of the usual sharp down in miners like we have seen for years, this time its more mild.  Click here to read and see charts.

What is likely happening is that gold miners are being bought, en mass on the recent down slope preventing the usual sharp down forcing action.  But this is speculation, no scientific proof.  The chart could be round for  any reason or no reason.

The market was expected to swan dive because of Government Fiscal cliff, that fizzled.  Also sharp downturn AFTER the elections.  Also because of bad Christmas sales.  Frankly, pick any of 100 reasons why it should turn down and has not.

And that is the point, it hasn't.  What can't go down usually will go up.  While some stocks may soar (think AAPL as a comeback king temporarily) I still like the gold miners for long play for my 401K.

ETF for Gold Miners GDX is at 45.82, GDXJ at 20.48
ETF for gold (GLD) at 163 and silver (SLV) at 31.12


1 comment:

  1. Global X Gold Miners Fund only includes companies that derive a high percentage of revenues from gold mining.

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