Any investor pessimistic about the gold stocks is not listening to the message of the market. What’s that message? Gold leads and the gold stocks follow. The most recent yellow box (green lined) illustrates this leadership. When gold stocks follow in the coming weeks/months will anyone but the talking heads be surprised? Let's hope not.
Source: Gold leading Gold Shares
The gold shares finally broke out to new highs in September. This effort was promptly rewarded by a big league takedown. Don't rush to proclaim the gold shares dead money quite yet. Paper operations only dislocate the short-term trend.
The gold stocks have broken out. They will recognized and be controlled by stronger hands during the next advance.
Gold and Gold Stocks Side by Side Comparison
