Gold Stocks: The Great Contrarian Trade Of 2014?
Some interesting points are brought up in this article that should have all contrarian investors looking at gold as a great play for the next couple years, or until the general investor sentiment changes. We know the fundamentals are in gold’s favor which is why I agree with many people that the upside far outweighs the downside in the PM market.
I agree with you SilverFox to the extent that hedge funds can bring huge amounts of capital which can move share prices. However there are bigger funds around the world that control more capital than hedge funds which could really send the sector flying.
Also retail investors are important to a sector like mining where share structures are tighter and general interest can provide the liquidity for everyday trading.
Cory, I hope you come To Toronto for The PDAC in march. DT
Al and myself will be there DT! We will be at the conference for the first 2 days. I am assuming you will be there too?
It would be great to meet you.
I try to remind myself that when the move is really made in the mining stocks, the first 100% or 200% off the bottom is going to come pretty easily. Thus, the real challenge is going to be to hold on to a piece for a move akin to the speculation in the internet stocks in ’99.
Can you imagine what the sector will look like on the day when retail is fully enamored with gold/silver mining? At that time, you could have DAILY moves in juniors which equal the current TOTAL market capitalization of the company.
I am preaching patience. (if necessary, sell enough during the early phases of the next bull to re-capture your original investment and then let the house money ride)
That analogy with the gate thing seems a little racist don’t you think SF. Seems like your implying colored people trying to break down a the gate to file their application for disability.
Sounds like Mr Fox has got a new crystal ball.
I think his new ball is acrylic.
Good thoughts!
you need the stuff !http://www.youtube.com/watch?v=m4sSDOOp7pk !!!!!!!
SF…..gold funds dont matter ? Sure, until they do matter and if you can catch falling wooden nickel falling 200 feet above then maybe you have something.
SF: Hedge funds matter but they didn’t create the bull market. Liquidity and lack of confidence arrives in Government.
My crystal ball is telling me that mining stocks would fly again around Q3 2014 or Q1 of 2015.
The ONLY reason – I will stress again, the ONLY reason mining stocks move is because of the money flow from hedge funds.. right now, the hedgies having too much fun with S&P.
Gold funds don’t matter, Al Korelin don’t matter, retail investors don’t matter – what matter is THE HEDGIES with speculative money to dump in to mining sector.
Then it creates the situation like, tribe of gorillas trying to make an entry through a narrow door.