Miners disappoint again

This morning gold found footing at the $900 support then advanced taking the mining stocks along in the morning. Then the crude market took a huge hit just before midday, taking gold down with it. Early morning trading looked promising as Hecla bounced off support at $8.26. We then rallied to $8.80 and I decided to hold. I spent the rest of the day away from my computer so I set a stop at $8.50 in case there would be further weakness. Luckily I broke even on this trade however this is very disappointing to see further weakness in gold and silver.

Bob Moriarty from 321gold.com brought up an interesting observation in his recent posting (Aug 4, 08 Are we at a bottom for gold Shares?) The ratio of gold shares to gold has never been so low. Today we reached another 5 year low, .173. I’ve never heard of any trader who can consistently pick every bottom, but if he/she existed, they would say we are pretty damn close in the gold stocks. I’m taking this view and will be looking for every opportunity to buy back in. Still holding AUY and will be adding.