Extreme declines have led investors and speculators to assume that much of this sector won’t survive lower prevailing gold prices. But nothing could be farther from the truth.
As fear-blinded traders rushed for the gold-stock exits, they claimed their selling was rational because gold miners’ very existence was threatened by such low gold prices. But that’s a total fallacy, this sector has no problem weathering sub-$1200 gold.
Gold stocks suffered a full-blown panic this past week! This exceedingly-rare magnitude of selloff was triggered by extreme futures shorting intentionally executed to force a flash crash in gold.
The US stock markets’ latest record highs have left traders exceedingly euphoric and complacent. They are utterly convinced this stock bull will power higher for years to come.
