Direxion Daily Gold Miners Be (DUST)

[Sgreg]

I'll be averaging down soon. GDX probably gets another pop Monday morning. Buying heavy there if it does.

I've been watching economic data all year. Last few weeks it has actually been improving from what it was at the start of the year. Economies are not in great shape though.

What people don't understand is that miners are still stocks. When there is a market crash, miners crash too. I saw it in 2008. My USAA precious metals fund went from 35 to 16 in 9 months.

To stay out of the market means get in cash and cash is king. It does not mean just get in another area of the market. People can assume what they want to. That miners fly when there is a market crash but history does not show that at all.

Someone can say "Well my miner is a hedge". Yea well your miner has big debt probably (most do). If there is financial trouble and the financial sector is in deep trouble that miner feels the pain too.

To buy actual physical gold I can understand. To buy mining stocks or paper gold however never made since to me. "I think there will be Armageddon so I'll buy paper/electronic products". Makes no sense to me. If they think everything falls to pieces how do they get to cash out? Banks back all of that stuff up.

Just my thought. Anyway going to make another buy today at some point and then be ready to possibly get some Monday perhaps. Have a good weekend.