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Hockmir

04/16/11 11:59 PM

#9 RE: farviewhill #8

One thing to consider when watching the small miners is the claim by some of the Precious Metals writers that some of the hedge funds use a trading strategy that shorts the miners when metals are on a move-up to derive the money to buy the metals. Then, when the metals peak and turn sideways, they sell the metals and close the shorts on the miners.

I couldn't say whether this is true, but it gives us something to consider when we think about mechanisms for odd behaviors.