As gold broke out 3 days ago, Precious Metal (PM) miners went into a temporary slump. Great Panther (GPL) is an example. You might ask how come? And, will the non-conforming change in PM miners mean that the current gold breakout is temporary? Here are my thoughts (based on research) on these subjects. 1. Many of the PM miners have undergone a large increase and people are taking a profit. 2. In the case of GPL, the stock moved 160%, while silver moved 16%. So, GPL has incorporated in it several other factors besides just the change in silver prices. Among these factors: GPL has a gold resource and it is issuing financing to prepare its gold field for mining. The graph shows that GPL was correcting (digesting its gains) even before the breakout in gold prices. Today, GPL is up, so it, too, is breaking out.
Friday, April 8, 2011
What about PM miners?
As gold broke out 3 days ago, Precious Metal (PM) miners went into a temporary slump. Great Panther (GPL) is an example. You might ask how come? And, will the non-conforming change in PM miners mean that the current gold breakout is temporary? Here are my thoughts (based on research) on these subjects. 1. Many of the PM miners have undergone a large increase and people are taking a profit. 2. In the case of GPL, the stock moved 160%, while silver moved 16%. So, GPL has incorporated in it several other factors besides just the change in silver prices. Among these factors: GPL has a gold resource and it is issuing financing to prepare its gold field for mining. The graph shows that GPL was correcting (digesting its gains) even before the breakout in gold prices. Today, GPL is up, so it, too, is breaking out.
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