Gold & Silver Miners

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dryam2000's picture
Status: Gold Member (Offline)
Joined: Sep 6 2009
Posts: 293
Gold & Silver Miners

With gold & silver going up sharply over the past 2 weeks it doesn't seem like the miners are going up as much as I would have expected them to.  Is this because oil has also going up & oil is the main cost in mining gold/silver?  I own a fair amount of physical gold, but I also own a fair amount of gold/silver stocks & I want to better understand the risk/reward relationship.  The mining stocks could be quite vulnerable if there were to be a large downdraft in the overall markets.  Any thoughts are appreciated. 

SteveW's picture
Status: Gold Member (Offline)
Joined: Jan 21 2010
Posts: 490
Re: Gold & Silver Miners

Gold is up 20.2% YTD while XGD (tracks global gold index on TSE) is up 20.6%

There should be some leverage in gold stocks, especially producing Juniors that are ripe for takeover. While mining stocks will tend to track the market they should be less vulnerable than the overall index, even the TSE that has a large mining/materials component.

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