Gold & Gold Stock Analysis Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold & Gold Stock Analysis

GLD 399.01

+0.1%

Dec 19 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Tommaso who wrote (24362)	4/29/2011 3:13:38 PM
From: carranza2	6 Recommendations of 29622

After long reflection, it seems that the problem with miners at the moment - but only at the moment - is precisely what is enriching us via the gold price. If that sounds vague, it is because it is. What I meant is that the surge in the price of PMs like the one we have seen must be perceived warily by folks who invest in miners because miners are dependent on the future prices of metals. A cautious fund manager probably wants to see the rise in PMs become more established before making a major commitment to miners, no matter how good they may be. Buying a high flying miner that crashes with the price of PMs is probably not good for a fund manager's career......so they hold off buying. If there is any thought that the PM surge will cool down or reverse, then a fund manager would be crazy to buy miners. Sure, some are, but not enough to take the prices to the heights implied by the present prices. If you believe the PMs move is real and sustainable, as I do, that also implies that it is just a matter of time before the miners go ballistic.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next