Correlation Between Miners and Metal Prices

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#1 Mon, Jun 20, 2011 - 7:45am
Silver Truths
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Correlation Between Miners and Metal Prices

Been playing silver and gold miners on cycles for at least 5 years and quite profitable with annualized CAGR of 50%+ by simply following metal prices and lag with stocks. My all time fav has been Silver Wheaton with buy in during the Wheaton River days. Lately, miners seem less correlated with the metal prices which make investing more difficult. I have my own assumptions and beliefs of why this may be occurring but would like to get other insights.

Happy trading,

JJ

Edited by: Silver Truths on Nov 8, 2014 - 5:09am
Mon, Jun 20, 2011 - 7:57am
Devise
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Resources

You need to listen to the KWN broadcast with Jim Sinclair & Dan Norcini: MP3 Link

Also this is worth a read regarding summer doldrums: PM Summer Doldrums 3

Mon, Jun 20, 2011 - 9:04am (Reply to #2)
Silver Truths
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Thanks Devise. Good

Thanks Devise. Good broadcast from Sinclair but short interest is not as high as expected. Proprietary program trading in recent years may have added to correlation and easy money. I guess that I was so use to seeing 1.5 to 1 correlation of miners to metal price so game is up. Lately our pre market activity will determine action. For example, silver price is down now so today will be up day for miners. Some believe hedgers are at work between miners and prices but this can't work as long term strategy as trend is our friend. It would be great to see Sinclair right so miners are attractive ridiculous discount to market ... Happy trading, JJ