Precious Metal Mining Stocks May Be Making History Today

Precious Metal Mining Stocks Could Make History Today

Gold always does what it should do…it just never does it when we think it should. –Richard Russell

Gates Cap Management Reduces Risk After Rare Down Year

Gates Capital Management's ECF Value Funds have a fantastic track record. The funds (full-name Excess Cash Flow Value Funds), which invest in an event-driven equity and credit strategy Read More

Past bear markets in Precious Metal Mining Stocks have been vicious since they are last in the production cycle as a commodity producer.

Past history of mining shares….

Unless these past three days are simply window dressing and short covering, then something meaningful may be occurring:

The GDX represents several of the senior gold producing companies. The GDX has under-performed the gold price as represented by (SPDR Gold Trust (ETF) (NYSEARCA:GLD)) for about 5 years and especially in the past two years. Note the radical change in the past two days as gold, ironically, fell below the all-in cost to produce an ounce of gold for the majority of mining companies.

Two days is just one sign, but a big one in my opinion. Until after the Fourth of July weekend, the true trend may be revealed since this is quarter end and before a long holiday next week. I am bullish for the long-term in SELECTED, WELL-CAPITALIZED companies. Remember to do YOUR own thinking and correlation is not causation. I have been two to three months early and down 20% so far, but I sense a turn–finally?! Prices are absurd.