The bear market in gold miners was particularly brutal to Romarco Minerals (OTCPK:RTRAF), although so far in 2014 the stock has made up a lot of ground. Year to date the stock has nearly doubled, and it has largely avoided the correction we have seen in the past couple of months. This is compared with the Market Vectors Junior Gold Miner ETF (NYSEARCA:GDXJ), which has risen just 7% for the year, and which has given back nearly all of its year to date gains since peaking in March. The following chart illustrates the relative performance.
(click to enlarge)
The outperformance in Romarco shares doesn't have any specific catalyst. What is likely happening is...
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