Gold Stocks

Gold prices fell last Tuesday for the first time in eight days and Wednesday gold fell below $1,600 an ounce as buyers stayed on the sidelines ahead of the meeting of the U.S. Federal Reserve which announced Wednesday a modest increase in its efforts to reduce borrowing costs for businesses and consumers.

Longtime readers know that we are a huge fan of intermarket analysis which is a rather new field within technical analysis. I believe John Murphy developed this field, thanks to his book. Intermarket analysis is the analysis of the relationships between the major asset classes: stocks, bonds and commodities. Furthermore, evaluating and comparing the different … Continue reading

As the gold stocks continue to fall to new lows and struggle to find a bottom, it is important to keep things in perspective. Before we get to the visual comparison with the 1960s and 1970s, we want to touch on the reasons why the gold stocks have underperformed in recent months and years. First, … Continue reading

One of the questions that we receive on a regular basis is whether one should invest in junior or senior mining stocks.

I have written (and warned my readers) several times about the weak performance of the HUI index compared to the price of Gold.

Gold seems mercurial lately sliding up and down causing some gold investors to grey prematurely.

I am not preaching to the converted however most if not all readers will know that the US banking system is in trouble as evidenced by QE1, QE2 and now suggestions of QE3.

“The HUI is probably going to make a short-term bottom within the next three weeks, but speculators who focus on gold and silver stocks should be financially and emotionally prepared for frustrating back-and-forth price action to continue until at least the final quarter of this year.”

In this article we will have a look at the performance of the HUI index (Amex Gold Bugs) compared to the performance of Gold.

Based on the March 2nd, 2012 Premium Update. Visit our archives for more gold & silver analysis.