Quick background about myself. I owned a commodity firm for over 15 years and sold to affiliates of ADM in 2002. Began trading gold in 1978..so I have some history here.
It hit me like a brick wall last night. Mining shares (GDX and GDXJ) are starting to disconnect from paper gold and silver (the futures price). Instead, they are trading off cash price. Paper gold and silver will try and pull GDX lower, but to no avail. Traders are looking at real values of gold and silver, and future real values of gold and silver. We may have a couple of days/weeks/or even months of tough sledding...but they are only buying opportunities.
Never before has a commodity price went negative (in crude oil), and to announce that it can trade negative two hours before the days close is about as crooked as you get. This was planned. Some traders were forced to sell at -$40.00/barrel.
Exciting times ahead, we all can sense it in the metals market. The markets will do everything they can to shake us out.