Sakata

Commodities vs. Commodity Stocks Redux

This is not a decline that worries me too much right now. Gold dropped from $1000 and the S&P500 dropped a lot in the last month. It is not surprising that this double drop caused a bigger drop in equities in GDX than in GLD. The way I see it is that it is just another opportunity to pick up more low priced mining stocks before gold resumes its uptrend.

Hedges Against Inflation? Commodities, Gold and Inflation-Linked Bonds - JPM

I wouldn't believe a word the comes from JPMorgan. Their activities are one of the main contributors to the present mess. They are also, almost certainly, the main cause of the decline in precious metals, due to their record high illegal shorting of silver and gold which the CFTC refuses to investigate. See news.silverseek.com/Te... if you don't know what I am talking about.