Comments on: Gold miners no longer leveraged play on the metal http://blogs.reuters.com/breakingviews/2011/08/31/gold-miners-no-longer-leveraged-play-on-the-metal/ Mon, 26 Sep 2016 03:26:00 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Venerability http://blogs.reuters.com/breakingviews/2011/08/31/gold-miners-no-longer-leveraged-play-on-the-metal/comment-page-1/#comment-8448 Sat, 03 Sep 2011 22:09:46 +0000 http://blogs.reuters.com/columns/?p=6872#comment-8448 Martin,

The ETFs – most veterans of the sector consider them Dastardly ETFs! – have been pumped hard by the Anti-Gold crew BECAUSE they tend to attract Speculators, who are by nature “Weak,” both on the Short side and the Long side.

Veterans of the sector tend to prefer the better Gold and Silver STOCKS, which are much less attractive to Speculators. In fact, the volatility which occasionally plagues the stocks comes via their major Market Makers, who often play games to purge what they consider THEIR private province from all “Weak” hands, again on both the Short and the Long sides.

At the moment, the XAU to POG ratio and TSX Gold to POG ratio are at multidecade lows – Yes, multidecade! This makes the premier Gold Stocks extraordinarily valuable to those who know the sector and know what they are doing. Of course, it also means we’ll have further bouts of excessive volatility as the major players jockey for position.

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