The gold price
Gold Mining Stock Divergence - 24 August 2010
Gold Mining stocks continue to outperform the S&P index...
OUR CHART below shows the "gold stock divergence" we highlighted a few months ago is still in place, writes Brian Hunt in Steve Sjuggerud's Daily Wealth.
For much of 2010, Gold Mining stocks and the broader US stock market increased at roughly the same pace. Then, when the S&P stumbled in April, the two diverged.
The broad market kept falling. But gold stocks remained solid, supported by the incredible strength in gold itself.
As you can see from the "performance chart" below, this divergence is still in place. Gold Mining stocks (the black line) are showing positive returns and climbing. The S&P 500 (the blue line) is showing negative returns and falling.
Gold stocks are typically viewed as a riskier asset...so it's incredibly bullish action for them to remain so steady in the face of terrible stock market weakness.
Get the safest gold at the lowest prices today by using world No.1 Bullion Vault...
OUR CHART below shows the "gold stock divergence" we highlighted a few months ago is still in place, writes Brian Hunt in Steve Sjuggerud's Daily Wealth.
For much of 2010, Gold Mining stocks and the broader US stock market increased at roughly the same pace. Then, when the S&P stumbled in April, the two diverged.
The broad market kept falling. But gold stocks remained solid, supported by the incredible strength in gold itself.
As you can see from the "performance chart" below, this divergence is still in place. Gold Mining stocks (the black line) are showing positive returns and climbing. The S&P 500 (the blue line) is showing negative returns and falling.
Gold stocks are typically viewed as a riskier asset...so it's incredibly bullish action for them to remain so steady in the face of terrible stock market weakness.
Get the safest gold at the lowest prices today by using world No.1 Bullion Vault...
Steve Sjuggerud, 24 Aug '10
Former stock-broker, mutual-fund vice-president and hedge-fund advisor Dr. Steve Sjuggerud is the founder and editor of True Wealth. Launched in 2001 and now one of America's best-followed newsletters for private investors, True Wealth also provides free analysis and ideas in the Daily Wealth email service.
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