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U.S. Conventional Markets are Certainly Not Out of the Woods

Big Al
October 13, 2014

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12 Comments
    Oct 13, 2014 13:43 PM

    This is not necessarily related to the interview with Chris. But this final hour and a half of trading today shows that the gold mining stocks are definitely tied to any weakness or panic in the conventional stock market. This has happened several times in the last 2 weeks of troubles in the conventional stock market. The metal itself seems to be immune to stock market troubles.

      Oct 13, 2014 13:45 PM

      Or I guess it could be selling the rallies in PM mining stocks!

        Oct 13, 2014 13:56 PM

        From late 2001 to late ’03, the senior gold miners went up 542% ($HUI:$SPX). Stated another way, the senior gold miners went up 339% (in dollars) while the S&P 500 went down 50% (in dollars).
        From its 2000 high to late 2004, the S&P was down 24%. From its 2000 low to its 2004 high, the HUI went up 630%. Countless junior miners did far better, but there was no index or etf for comparison.
        http://stockcharts.com/h-sc/ui?s=$HUI&p=W&st=2000-03-13&en=2004-11-22&id=p24642940478
        Conclusion: barring a broad market crash, the miners can do very well while conventional stocks decline —as we experienced today.

          Oct 13, 2014 13:58 PM

          Sorry, first sentence should have been clearer. Gold miners went up 542% vs the S&P 500….

      Oct 13, 2014 13:00 PM

      Very true. on the first point. Miners will go down generally with everything else, though less so if the metals were to jump a lot.

      Oct 13, 2014 13:30 PM

      As it should be immune to stock market troubles.

      I believe that Chris said the miners would be related but only in the short run.

    Oct 13, 2014 13:03 PM

    At least there were still some decent gains among gold issues today, even if they were off their highs thanks to the late swoon.