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Non-Tech : The Woodshed -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (54661)	10/5/2016 9:15:30 PM
From: SwampDogg	Respond to of 60900

you could tell today where the leveraged players were positioned (AEM, AG etc) as the liquidation continued.

To: Claude Cormier who wrote (54661)	10/5/2016 9:39:29 PM
From: stuffbug	Respond to of 60900

Exactly, they want leverage to the price of gold. Some pension funds aren't even allowed to hold gold and silver, so they have to go with the stocks. With GDXJ, you aren't as sure about the leverage. As the market cap of intermediate producers escalates, the GDXJ removes them and replaces them with companies that produce less metal. That was the problem in the frothy 2011 market. In GDXJ, good producers got replaced by companies that weren't very close to production. So when the bear arrived, these supposed "near-producers" were pummelled. Top to bottom, GDX lost about 80%, GDXJ 90%.