Because DROOY is more leveraged to the price of gold than other. My gold strategy involves three issues, DROOY, RGLD and NEM. I don't "invest" in them, I trade the range and hope to be caught with some gold once $400 is really taken out.
==============================================================
Hi Doc,
It seems that many of the stragglers are commonly referred to as being "more leveraged to the PoG." I hear it from fans of ABX, KGC and DROOY all the time. What the heck is that supposed to mean and is it really a fair characterization of a stock whose fundies are poor enough to offset the rises in the PoG. Some boats just seem to be too heavy to be included in the rising tide theory of investing. <VBG>
W/o going overboard on this I pulled up the charts on gold and DROOY so I could get a visual of this supposed leverage to the price of gold that you allege exists.
Fwiw,
last Nov the PoG was in the $320's while DROOY was in the $3.50's.
Last May the PoG was in the $350's while DROOY was in the $290's.
And now that the PoG is in the $390's, DROOY is selling in the $260's.
If that is what constitutes "being leveraged" to the PoG, I think I'll give it a big fat pass. <GGG>
As for your "hoping to be caught with some gold once $400 is really taken out" goes, I also hope you are "caught" with a full plate of your favored golden threesome.
In my world of non superhero day trading skills, I find that the only way to insure being aboard the Gold Express when it breaks above $400 is to be sure I don''t get off before I reach my destination, which, imo, is best described as having four figures in it's address.
Dan 
AI
Market Data 
Markets 
