Gold Mining shares - Why haven't they gone up?

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dillonlisa1's picture
dillonlisa1
Status: Member (Offline)
Joined: Aug 12 2009
Posts: 13
Gold Mining shares - Why haven't they gone up?

Can anyone explain why gold mining shares aren't going up? Is it because people haven't made the link between the gold price & mining profit? 

goldrunner1's picture
goldrunner1
Status: Bronze Member (Offline)
Joined: Apr 20 2009
Posts: 27
Gold Mining Shares

Hi there.

I hear what your saying about the shares lagging the price of gold. I don't keep track of any particular articles but some of the sites I visit have covered this issue. Experts on gold who come to mind are Jim Sinclair, John Embry, James Turk, Bill Murphy, Bob Chapman as well as some of the CEO's of the Gold Mining companies. You can google/you tube their names and get their latest articles and comments. King World News also covers this topic quite frequently. Basically my take from what they are saying is that there is massive shorting by hedge funds of the gold/silver mining shares. Two reasons given for this is that it has been an easy trade for the hedge funds to go long bullion and short the mining shares as a hedge, which somehow is profiting them. Secondly I've read that keeping the share price down via shorting/manipulation is helping to keep the facade of a strong dollar and give the impression that gold/silver are both in a bubble. Part of the market physcology being that if the mining shares aren't reacting to the gold/silver prices that we must be in some sort of bubble. One thing mentioned by one of the experts that makes a lot of sense to me is the cure for low mining share prices is low mining share prices. I have noticed that over the past few weeks several of the major producers are starting to move upwards in price. My thoughts are that we are at the start of a major move of the shares based on what I've been seeing and who I've been following. Just so you know I am not an expert on these matters or a professional money manager so do your own due dilligence. I am following the information provided by the above mentioned experts and their opinions.

Hope this helps.....Bob.

dillonlisa1's picture
dillonlisa1
Status: Member (Offline)
Joined: Aug 12 2009
Posts: 13
Thanks

Thanks Bob.

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