Fear of recession,Fear of markets,Fear of dollar collapsing etc is what is now driving move into gold. Gold is one place people can safely take refuge and hunker down till this subprime mess,Housing collapse,$ 100 oil price picture gets a little clearer.
If you look at ABX,NEM,GG,AUY,HMY which make up roughly 50% of the HUI index from Dec 23 to Jan 3 they have all moved up,ABX leads the pack with almost 29% upside and NEM trails the pack but still up nearly 15%. The charts are almost parabolic.Individuals can never move these at such a pace,it only signals the institutions are moving in gold.
Easy Money seems to have been made in these stcoks, you need to beat them to the table to make a killing.
Fear Factor is still there so move into Gold will still be a factor.Now may be time to pick on some junior mining stocks when new money spills over to them
I also noticed silver stocks have made no significant moves.CDE,SWC have actually dropped quite a bit.Silver is supposed to follow Gold,so may be the time to load up on a few of those.
I am just throwing out my thoughts, I really dont play in this Arena.Distressed Equities is where I like to concentrate on.
Good Luck to everyone.Waiting for Monday Night Smack down |
