Gold-Stock Upleg Healthy

By Adam Hamilton – Re-Blogged From Gold Eagle

The gold miners’ stocks just rolled over into a correction, raising concerns about the staying power of their massive post-panic upleg.  These higher prevailing gold prices have driven very-strong fundamentals at the gold miners.  But they are entering the seasonally-weak summer doldrums.  And current sentiment and technicals play major roles in governing when uplegs remain healthy or ready to give up their ghosts.

The GDX VanEck Vectors Gold Miners ETF remains the leading and dominant benchmark for this small contrarian sector.  Its $14.3b in net assets this week were a colossal 33.2x bigger than those of its next-largest 1x-long major-gold-miners-ETF competitor!  GDX’s only real rival is its little-brother GDXJ mid-tier gold-miners ETF, which is only about one-third of GDX’s size.  The GDX gold stocks have sure had a wild ride.

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Gold-Stock Correction Underway

By Adam Hamilton – Re-Blogged From Gold Eagle

The gold miners’ stocks are correcting.  They’ve been sliding and drifting lower on balance since their powerful recent upleg peaked a month ago.  Corrections are normal and healthy in ongoing bull markets, rebalancing sentiment to pave the way for the next upleg.  They also offer the best buy-low opportunities seen inside secular uptrends.  Deploying capital in gold stocks after corrections multiplies wealth-building potential.

While most people dread corrections, battle-hardened speculators and investors embrace them.  They make prices oscillate around their bull-market uptrends, greatly expanding their overall travel.  The more price movement, the more potential upside to ride.  Today’s gold-stock bull proves this.  Consider it in terms of the most-popular gold-stock benchmark and trading vehicle, the GDX VanEck Vectors Gold Miners ETF.

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