Any legit GDXJ investor who bought shares over the brief history of this ETF would obviously be selling at a significant loss right now. As the case for owning gold and related investments is now as strong (or stronger) than ever with the negative real interest rates, pervasive central bank monitization, and abundant global crisis risks. Is it just me, or is it almost impossible to believe that anyone interested in gold would not be selling out now at a huge loss? At a PE ratio of below 8? Hate to agree with the "ALL CAPS TOPIC" guy, but there is clearly some manipulation going on here. The big conspiracy theory has been that the gold and miner ETFs would be used a short-selling vehicles by the government (fed & treasury) discourage gold ownership (gold being one of the few mechanisms to protect yourself from monetization, it is clearly in the interest of the government to discourage its ownership). The daily trading patterns of the last few months certainly support this "far fetched" conspiracy theory. We'll see how this plays out.
Its all technicians at the hedge funds calling the shots now. I don't see the public debt problem resolved anywhere, US, Europe, Japan...... They all have to inflate. I do agree with the street there is little inflation because people are poorer and poorer with payroll tax and healthcare tax kicking in. Jewelry demand could go down. OTOH China will continue buying gold for her reserve. A lot of it.
Agreed. This has been the strategy for some time now. If you look on the gold charts to see the last couple of times gold was testing 1800, it was clear from all technicians that gold was going to take it out. Though each time gold dropped around $50 more or less. It's apparent that there's some real desperation setting in with the central bankers and although the coordinated tune is everything is improving, we know better. Time will tell, but as gold approaches the 1550 area I'll be loading up for the big move which should come within the next two years as inflation kicks in. One way or the other, in my opinion, the bull run is far from over. If the economies take off, the money flow will have to increase which will drive inflation higher. If they don't and the race to the bottom continues, hard assets will be the only place to hide.