InvestorsHub Logo
Followers 129
Posts 3721
Boards Moderated 0
Alias Born 01/02/2003

Re: None

Wednesday, 08/10/2011 4:31:50 PM

Wednesday, August 10, 2011 4:31:50 PM

Post# of 118202
The price of miners has been stagnant for quite a period while gold has been on a tear. Miners, because of the PE leverage should outperform holding the commodity. It appears that the gap between gold's rising price and the lagging price of "miners" is closing. The past two days, miners have run with gold. Can't mention individual stocks but many were around 6% gains today. Here's an article from the Toronto Exchange:

CANADA STOCKS-TSX rallies 1.3 percent as gold-miners drive gains

Wed Aug 10, 2011 3:15pm EDT
* TSX up 161.68 pts, or 1.34 pct, at 12,270.94
* Seven of 10 sectors stronger
* Gold miners drive gains
* Energy issues bounce with the price of oil
* Financials sink on euro zone fears
(Recasts, updates prices, adds analyst comment)
By Trish Nixon
TORONTO, Aug 10 (Reuters) - Toronto's main stock index
climbed more than one percent on Wednesday, clawing back from
early losses, as gold-mining shares rallied with the price of
bullion, outweighing a sinking financial sector.
The TSX rose even as global stocks slumped on speculation
about the strength of French banks holding troubled peripheral
euro zone debt that tapped into investors' worst fears about
possible contagion from the euro zone debt crisis. [MKTS/GLOB]
The price of gold rose to a record high, extending its
biggest rally since 2008, as anxious investors picked up the
safe-haven asset, which helped buoy Toronto's resource-heavy
index. [GOL/]
"We've managed to outperform the rest of the planet ...
mostly on the precious metals sector," said Francis Campeau,
broker at MF Global Canada in Montreal.
"Money is moving out of the banks and into gold stocks or
miners."


Here's another article posted last night that analyzes the lagging miners price when compared to raw gold:

http://www.wyattresearch.com/article/gold-companies-lagging-gold-big-time/23523

Join InvestorsHub

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.