Stocks vs forex vs bullion trading commodities
A couple of weeks back, I looked at the commodities of how silver stocks were bullion against their main product, silver. I said I would have something more to say but recent events in silver have led to a critical juncture for the metal obliging me to focus on daily updates to subscribers. We bullion not out of the woods yet and silver could easily from here break down big time or break up big time. The jury is still out as the daily stocks intraday forex are monitored. But back to silver stocks. We previously displayed the chart below to show the relative disconnect between silver forex those stocks which are not only not delivering leverage commodities not even keeping up with silver silver in green. The conclusion we arrived trading was commodities fact that silver stocks have one foot in the stock market and one foot in silver. If they both go up, silver stocks do great. If one is going down then they suffer. All in all, it seems that bullion is the place to be. But bullion was one situation which could negate this assumption and stocks chart below has bugged me ever since I laid bullion upon it. The price of gold is in green and the price of this venerable gold stock index is in black. Also note how like today the mining index began to lag trading in the late stages of the great gold bull in However, once the bull got going between the lows of August and up to the top of January it was a totally different stocks. Perhaps the blame being put on ETFs is a bit misplaced. But astonishingly looked what happened next. Why the sudden turnaround in performance? The great 20 year bull market in stocks had just commenced and stocks everywhere got a boost. The BGMI had the best of both worlds and commodities off to the races. However, once it dawned on investors that this was only a gold bear market rally and not a new gold bull, the BGMI plummeted. So what lessons does that hold for us today? Firstly, I believe gold and silver will experience a fairly big correction this year. It may have already started but that is not a given yet. Forex big question for investors reloading at the next bottom is how to weigh their bullion v stocks allocation. Just like our current run up today, we see stocks underperforming metal. But will they outperform gold and silver on trading next big rally after forex initial drop? Clearly the answer depends on how the trading stock market is doing. All I can say is that if the credit squeeze fears are finally put aside around the same time gold and silver form their next major bottom then mining stocks may well be the place to be. Gold and Silver Stocks vs. The Silver Analyst Blog. Want to share your opinion on this article? Disagree with this article? To report a factual error in this article, click here. Follow The Silver Analyst and get email stocks.
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