Extremely Important Update On Gold & The Mining Shares
Despite ups and downs in the gold miners relative to gold, the spread’s long-term momentum trend favors gold miners vs. bullion. This after many years in which the opposite was true. Things change and we measure for that.
Momentum rose above sufficient resistance in early 2016 (coincident with annual momentum upturns in gold and gold miners) to shift towards favoring miners. No, of course not each and every miner. Like any stock sector, gold miners have their heroes and their dogs. And even those change from time to time.
But as a basket (like GDX), gold miners should now be expected to outperform bullion.
In this measurement we use the XAU Index; it’s been around long and therefore has much data history. And its spread and momentum of the spread vs. gold both say “outperform” for the miners (see chart below).
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http://kingworldnews.com/extremely-important-update-on-gold-the-mining-shares/
Thanks!
Yes I think you are right. Gold miners are lagging at the moment. I've seen my mining portfolio languish compared to 2016, while Gold seems to be recovering nicely. It's time for some big upside I think.
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Yes things are looking a bit different, some of my little Junior gold miners have been looking pretty tough lately. Sure hope it continues I've been waiting a long time!