May find that stocks, after experiencing a minor lag effect, will enjoy a major SLINGSHOT EFFECT! Stocks are so highly leveraged to the price of gold that a minor gold increase is a massive bottom line increase. This will create great interest in owning these companies.
Once under weigh, the massive flood of buy orders will propel these stock prices to unimaginable levels. It will be similar to the tech frenzy, but with a slimmer pool of stocks will create a higher slope to the up curve and a shorter period to the wave.
Good afternoon...with current volatility think any time frame offered would be a disservice as you might be inclined to act on information and think any guess would be speculation...would say that like one of those 1950 table top horse race sets where the mechanical horses jerk forward and eventually all end up at the same finish line that the miners and the metal have chased each other for at least two years can remember..the miners led the way up starting late last year and then sat...gold has spiked multiple times and backed off...what you are seeing IMHO is a predictable INCREASED volatility as the bull run gets underway...IMHO we don't have a bullrun till we have double digit POG gains so think we are still in early stages...think that a $25-$50 one day gain would open the floodgate...the tech run, oil patch run, pharmaceutical run and gold run all have in common that when the word gets out to the general market there is a pile on effect...doesn't matter whether buys are warranted the herd mentality IMHO simply brings them about...so think GFI could meander around up and down within a $2 range for a period of days or weeks then up she goes $2 in one day...however if the POG were to have a double digit day think GFI could move up $2,$3,$4 in one day...hope that helps..regards, groucho
That's something that crossed my mind this morning. We could have a run into the 360-370 range, under control, and not have much of a run in gold stocks. That's a very frustrating realization. Unless the flood gates open on the metal, they will not open for the shares.