Friday, April 29, 2011

Gold vs. Gold Miners

Notice the divergence between $GLD and $GDX?  That’s Gold vs. Gold Miners.


It could be investors surging into Gold over anything else.  It could be a sign that the mania for the metal is surging.  Even so, who knows how long the mania can last?  It could go on for awhile.  We are certainly seeing wild projections for the rise in precious metals.

Of course, we’ve seen that recently with tech stocks in 2000 and real estate in the mid-2000s.  And we know how it ended.

But that may not be today’s business.  People want, no, must have, gold.

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