One step forward, two steps back, dancing the miners waltz. As texpat pointed out, there are reasons galore for why prices are heading south. Its been in the wind for some time now that the share market is bound for a trip to the basement, so this red red green, red red green pattern doesn't really come as a surprise. What does surprise me however is how this time, as compared to the Fukushima drop, I am much more prepared to hold than to sell.
I remind myself of the reasons why I bought those shares in the first place, how the medium to long term fundamentals for PM's and commodities in general have not changed to the extend that the resources those companies are sitting on won't be worth a fortune at some time in the not too distant future.
Even though my cookie jar is only 15% in cash, and I will in all likelihood miss many great buying opps to come on this downward spin, especially should the bottom really fall out and the Dow (or ASX in my case) crash 20% from where we are today, I still believe (turning to hope) that most of the companies in my portfolio will bounce back sooner or later to earn me handsome returns. Metals prices would have to collapse dramatically, over an extended period, for those miners to be failed ventures. I don't have a crystal ball in my office like the Turd, but my gut feeling tells me that come New Years eve, the miners will have returned from the basement with a magnum bottle of champus. If not, I have a few cans of cheap beer without them.
On this note, as the ol saying goes, 'no pain, no gain.'