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Mining Stocks Are Still Lagging The Precious Metals



April 20, 2011 – Comments (1)

The leading gold and silver mining stocks have recently lagged the precious metals themselves. Sometimes the leading mining stocks will lead the metal, however, they have been lagging the precious metals since mid-March 2011. Gold and silver are making new highs this morning while the Market Vectors Gold Miners ETF(NYSE:GDX) is still trading below its December 2010 high which was $64.62 a share. This morning the GDX is trading higher by $1.45 cents to $63.10 a share. The GDX will have intra-day resistance around the $63.50 level.

Some leading mining stocks that are trading higher this morning are Newmont Mining Corp.(NYSE:NEM), Randgold Resources Ltd.(NASDAQ:GOLD), and Goldcorp Inc.(NYSE:GG). These stock will usually trade in tandem with the GDX, therefore, watch for pullbacks when the GDX comes into its resistance level.

Nicholas Santiago

1 Comments – Post Your Own

#1) On April 20, 2011 at 11:57 AM, BillyTG (28.94) wrote:

Don't sell your miners. Instead of thinking of them as lagging, think of them as being springs coiled up tighter and tighter as spot silver goes higher. If anything, now is a good time to buy miners. 

There will eventually be another big (and probably short lived) correction in silver, probably in June if you belive Terd Furguson's excellent that'smost likely the next best time to buy miners, especially if the hedge funds haven't unwound their short positions by then.

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