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Thursday, March 28, 2013

Insider buying of gold stocks surges to multi-year highs

Everyone hates the gold shares, except a growing number of insiders.  The short-term cycles trying to push below -2 sigma.  This is common for price reactions.

Chart:  S&P Gold (GPM), GPM to Gold Ratio (GPMGOLDR) and GPM Cycle Z Scores (GPMC1 & GPMC2)


Headline: Insider buying of gold stocks surges to multi-year highs

The TSX global gold index has lost about a third of its value over the past two years. The S&P/TSX Venture Exchange, stock full of gold mining juniors, hit a multi-year low this month.

Yet, executives and officers who work within those businesses are showing remarkable confidence that the sector is poised for better times.

According to INK Research, there are now seven precious metals stocks on the TSX with insider buying for every one with selling. That’s a near doubling of the ratio since mid-January – and represents a level of lopsided transactions that is usually only seen during major market peaks or valleys.

“That is the type of insider buying we saw in the broad market during the height of the great financial crisis in late 2008 and early 2009,” points out Ted Dixon, CEO of INK Research. “A similar situation now seems to be in place among gold and silver miners.”

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