GOLDBUGS AMEX Goldbugs Index (GOLD)

[nwsailor]

NEM I've had this stock for some time now. I recall when gold hit 450 NEM touched 50. Here we are today with gold approaching 500 and NEM is sitting at 47. In fact today gold is up and NEM is down. That's not exactly what I was expecting. Many of the pundits predicted the miners would do better than the price of gold because their profits are leveraged.

I have also heard that the main reason for the poor performance of many of the miners is the cost of energy. To me it looks like almost a 25% hit on the stock price. That's a heavy hit. One would think the share prices would go up (relative to the price of gold) as the energy prices have come down. I'm not seeing that.

Question for the board. What else is suppressing the miners relative to the price of gold?