Unless one is living under a rock everyone knows about the china gold fix thing. It has been used for weeks for pumping. It is all over the internet.
A couple of things from my past observations. First as I have said before it is possible that since they are using that event as a rallying cry that it will be the time they actually start dumping. You know sell the news kind of thing. Usually what happens.
Second weed, guns, and gold sectors usually get pumped together from what I have seen in the past. The weeds have been on a roll just like miners. I'd call this a winter time pump for miners and a very good one. From past observations these winter pumps (the good ones) last awhile and start in January and don't end until mid to late April...on average, give or take.
Third, mining companies are about to report Q1 earnings. They will not be all that good. They will be better then Q4 though but they have to be better, they can't get any worse and metals are up a good amount since Q4. Q4 earnings were bad but miners got a pass. At that time though the stock market was very bearish and gold was going up and the valuations of miners was a ton lower. They won't get a pass this time. Matter of fact I have seen expected estimates and miners had better hit those estimates at a minimum. ABX for instance is supposed to earn 8 cents a share. They better. People have paid up big time and paid huge valuations for miners. Investors will expect quality earnings. If you pay quality prices then you expect quality results. Earnings better deliver.
You put those 3 things together and I'd say chances are good in next 2 weeks or so mining companies have the proper correction that they are due. I was tempted to re-enter DUST today but I did not. I'm still on the sidelines. I want to see how much more of a pump they can get out of the china fix deal.
Knowledge + risk taking = prosperity
