Don-100

Dollar Rally Won't Last Forever; Don't Give Up on Gold

I wish I were as certain of the upcoming performance of gold miners as you are. I do believe that gold will sooner or later bottom and then rise nicely. I think, though, that ease of investing in gold via an ETF (like GLD) may have reduced the attractiveness of gold miners. If you look at the performance of miners vs gold for the last few gold uplegs since 2001 you will see that the miners' outperformance vs gold has been diminishing, especially since the appearance of GLD in late 2005. Your historical relationships do not factor this in. And now with the double-gold ETF, this makes it even easier to profit from gold without having to take on all the risk of the miners.