Zeev's Turnips Patch-No Politics (ZEEV)

[basserdan]

*** Gold related post ***


Shorts Attacking the Gold Miners

Many gold investors have noted, with consternation, at the divergence between the price of gold and the performance of the gold mining stocks. Gold has generally been trending higher while the miners are going nowhere. The theory goes that the miners lead the price of gold but that doesn't seem to hold water here as gold keeps heading north.

So why the divergence? Perhaps the answer is in the high levels of short-selling in the miners. Most gold investors are aware of the shorts on the metal itself and the hedges that some of the miners hold. For some reason, there are shorts attacking the miners too.

continued at:

http://www.gold-eagle.com/editorials_03/moy012703.html

Dan