There's been a big shift in the mechanics of gold trading lately, observes Dennis Gartman. For...


There's been a big shift in the mechanics of gold trading lately, observes Dennis Gartman. For the past four to five years, the spot price of gold has risen while gold miners have languished, but no more. Recently, gold mining stocks have outperformed the advance in the yellow metal, which Gartman sees as a positive sign that the rally in spot gold may have legs. How to play it now? He recommends buying the Market Vectors Gold Miners ETF (GDX).

From other sites
Comments (5)
  • Aristiphones
    , contributor
    Comments (1325) | Send Message
     
    of course since they still dig this stuff up with their bare hands i'll make sure to dump all my Caterpillar and John Deere tomorrow.
    19 Jun 2012, 09:17 PM Reply Like
  • User 468923
    , contributor
    Comment (1) | Send Message
     
    I like the way Gartman's thinking (this time). Gold mining stocks have fallen way behind and have quite a ways to go to catch up with the price of gold.
    19 Jun 2012, 11:51 PM Reply Like
  • Pinocchio1
    , contributor
    Comments (206) | Send Message
     
    Not 100% sure.

     

    With Gold outperforming the miners for years, this gap cannot grow forever, there must be breathers/rests on this - just like AAPL stock couldn't gain forever, even though their fundamentals have been. The fact that we are in one of these cyclical breathers does not imply how deep or long it will last (or we'll all be very rich)

     

    The fact that Gold extraction costs are rising, and there are less and less new finds for the miners, and emerging market new taxations... may point in the other direction.
    and... miners are still making a living (which is very different than saying their stocks are rising)
    So... the long term trend may persist.

     

    I am not claiming to be better informed on Gold than the writer.
    I am Long on GLD and sold all my big miners a year ago with no intention of ever going there again.
    maybe, maybe.. look into Yukon's Klondike - long shot on Penny stocks
    20 Jun 2012, 02:25 AM Reply Like
  • kmi
    , contributor
    Comments (4587) | Send Message
     
    A lot of gold sitting in the ground has been pre-sold or borrowed against at prices lower than gold current price, so the miners trade cheaper. This isn't going to change.
    20 Jun 2012, 08:56 AM Reply Like
  • tucsonics
    , contributor
    Comments (21) | Send Message
     
    If you listen to Gartman over the years, he has flip-flopped many times, going with the short term trends. Miners are a trade, gold is a longer term investment, a store of value. $1700-2000/oz is very feasible in the year ahead, depending upon central bank activities. I'd rather finance my retirement with AAPL and the metal than GDX. I'm long metal and AAPL, CLM, CFP for high yield.
    20 Jun 2012, 12:47 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs