Zeev's Turnips Patch-No Politics (ZEEV)

[chainik]

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Good point concerning HUI/POG; it can not explain, however, why junior miners are lagging. Using your argument, these marginally profitable/exploratory companies should go up big time when rising POG moves them in the profitable range. Most of the small miners I follow did not move a lot ,and in many cases they are two-three fold lower now than at the peak a year ago.

I have a trivial (optimistic) explanation why HUI underperforms: many of those who are interested in gold sector are now buying GLD instead of stocks.

Another trivial (pessimistic) explanation: within a few months rates (and USD) will go up; gold and HUI will go down.

Personally I favor the second scenario and reduced my exposure. Since this opinion is not very firm, I will buy the pullback if we get one (g)