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Re: Skylanders post# 6222

Friday, 07/14/2006 8:28:40 AM

Friday, July 14, 2006 8:28:40 AM

Post# of 78703
I wonder.. gold stocks did not rally as much as gold did yesterday... and sometimes when gold went down, gold stocks were relatively stable. Perhaps it was profit taking?
There is a correlation between gold stocks and gold, and energy stocks and oil prices... but the correlation isn't always 1 to 1.
This is especially true of low priced stocks in which speculators can drive the price of a stock wildly up and down, and of course whatever sector is considered the "bull" market at the time (in this case it is commodities - gold and minerals).

I'm beginning to wonder if it isn't safer to just buy gold pools instead of owning gold stocks in times of volitility. True, the returns aren't as potentially high as gold stocks, but then again, it might be safer (maybe).