I am a gold bull, but I'm sorry I just can't ignore the divergence between GLD and the miners anymore. There was a time when it made sense for me to rotate out of GG and ABX and into GLD. Lets face it GLD is clean and tracks Gold pretty well. I didn't have to worry about miners expenses or management screw ups or poor acquisitions. Today is a different story. Certain miners are focused on expenses and are pretty carefull not to screw up like they used to. Proven gold vs market cap is too compeling today. The miners vs gold ratio is out of whack. Today I sold the balance of my GLD and the proceeds will be rotated into the miners. I expect GLD to be up, but dramatically underperform the miners this year. GLTA
I like the miners, and GLD has shown signs of weakness lately but I think you sold your GLD too early. Miners are a buy in general, but GLD is not a sell. As of today, I'd hold until $180 or so, but I certainly would not be buying.
In the past the p/e for gold miners was very high/too high. one might expect that given the price of gold they should be able to achieve good earnings in general. Thing is to pick one and be lucky enought that they do not have operational or ore quality changes it tough and gld does not have that.Thinking energy costs and perhaps labor costs have or are about to come down so they miners might do better relative to gold itself. Still think gold has merits considering the economic challenges. glta.
I like ABX on management cost cutting, proven gold reserves, projected earnings increase, and mines. After that it's a toss up between several but I give the edge to GG. Sorry, but AUY is not one of them.