Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in

Gene Arensberg: Divergence between gold and junior shares is contrarian's delight

IMG Auteur
Published : August 13th, 2012
250 words - Reading time : 0 - 1 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : Market Analysis

 

 

 

 

At the Got Gold Report, Gene Arensberg has posted in the clear his new analysis of junior gold and silver mining stocks, which have been nearly destroyed over the last couple of years but which, Arensberg finds, are showing signs of life. The divergence between the price of gold and the price of the juniors is now so great, Arensberg says, that contrarians should be springing into action. Arensberg writes of the chart of the Canadian Venture Exchange, home of many juniors:

"The chart just above is the kind of chart that makes a contrarian salivate with great anticipation. Consider that prior to the Lehman collapse the CDNX traded at a multiple of the price of gold -- up to five times the gold price. Today it has fallen all the way to less than .75 times the price of gold. Simply amazing volatility on display in the chart above. And contrarians know that volatility works in both directions. The market first creates, or rather, is driven into huge divergences and gargantuan imbalances -- which it abhors -- and then gets busy correcting them, given enough time and patience. For many gamers it is the pace or frequency and the amplitude (size) of the giant moves that are out of phase with their own tolerances and psychology/comfort levels -- so they end up missing them completely."

Arensberg's commentary is headlined "Vulture Bargain Update Notes for August-September 2012 -- Seller Exhaustion" and it's posted at the Got Gold Report here:

http://www.gotgoldreport.com/2012/08/vb-update-notes-for-august-septembe...

 

 

<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
Chris Powell is the secretary of the Gold Anti-Trust Action Committee (GATA) which has been organized to advocate and undertake litigation against illegal collusion to control the price and supply of gold and related financial securities.
WebsiteSubscribe to his services
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Leaked Police Report: There Are 23 Muslim-Controlled “No Go Zones” ...
25 Junkevthorne1
I do not know how anyone could take an article like this seriously. It is garbage of the worst kind. 'Anonymous sources' 'unidentified leaks' - not...
Bitcoin in Perspective: Bill Gates Worth More, Gold 200 Times More
22 JunDavid C.2
Yes Mish, but bitcoin and the wealth and debt burdens of the world are fully backed by electrons which are very light. Unlike that 68 ft glob of m...
Bitcoin in Perspective: Bill Gates Worth More, Gold 200 Times More
23 JunDynoman0
Valuable potential is what's currently offered by digital currencies. It makes absolute sense to have a global digital economy based upon borderles...
Absent Without Leave
21 JunS W.
Bail ins for sure. It was agreed at the G20 in Brisbane. You are not really a share holder. You are an unsecured creditor to the bank a...
Absent Without Leave
19 JunJ.3
Perhaps all the international shenanigans are the smoke and mirrors intended to obfuscate the view of the looming financial catastrophe. When the ...
Gold Price Cuts Post-UK Election Loss, ETF Investors Sell, Nasdaq D...
16 JunSam Maher
"the SPDR Gold Trust (NYSEArca:GLD) – saw its sharpest liquidation since March in the week-ending Thursday, with shareholders cutting the fund's si...
Things To Come
13 Junkevthorne3
If voting for 'parties' actually made a difference they would have not legalised it. Since 1914, it's been the supply of currency that has governed...
Things To Come
12 Jun Roygbiv0
And JHK ruined your life because he then voted for Obamba ? For Jim C.
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS