Shares of mining companies tend to be more volatile than the precious metals themselves--which are already volatile. Having said that, shares of mining companies have been beaten up badly since peak values in 2011. The bottom may have been put in place last year, and the fact that shares have outperformed in 2014 is bullish for the precious metals complex because shares tend to lead the prices of the underlying metals.
Despite mining shares outperforming other asset sectors, mainstream financial media continually ignores this sector.
Due to the high volatility, it takes a strong stomach to trade in mining shares, but the bottom may be in place. However, share appreciation will be not be a straight line, so be careful, and be nimble. Buying on dips for shares is the greed trade. The fear trade is buying physical gold and silver.
http://news.investors.com/080114-711490-gold-silver-miners-show-strength.htm?ven=yahoocp&src=aurlled&ven=yahoo
Sunday, August 3, 2014
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