The chart of mutual fund Van Eck Intl Investors Gold C, IIGCX, compared to Direxion Mthly Small Cap Bear 2X, DXRSX, for the period of June 17, 2010 to July 2, 2010, shows that one of the top performing precious metal mining funds fell 6%, and what has been the worst performing bear market funds, rose 22%.
The currency traders called the Yen, FXY, higher on:1) fears of the European sovereign debt crisis that caused regional banks, KBE, and the too-big-too-fail stocks, RWW, to fall in value; which in turn caused the financially sensitive Russell 2000, IWM, to fall. ...2) the end of Federal Reserve QE ...3) the disinvestment of basic material stocks, IYM,
This caused the financially sensitive and credit sensitive Russell 2000 small capitalized value shares, IWN, to fall rapidly in value, rewarding those who have been short these shares with DXRSX and SJH. Also, as profit taking came to gold, GLD, the gold mining stocks, GDX, disconnected from the price of gold and fell lower with stocks.
Disclosure: I am invested in gold coins