Ed Steers Gold and Silver Dailyhttps://www.caseyresearch.com/gsd/home
The gold stocks certainly had a different kind of trading day. After gapping down a bit at the open and making a feeble attempt to rally, they got sold off heavily...and by 10:15 a.m. were just about a their lows for the day. The actual low came late in the New York lunch hour...and it wasn't much a low. From there, the stocks rallied back strongly, gaining back two percent from the bottom. This was an amazing performance considering the fact that gold suffered one of its biggest one-day losses ever...and declined throughout the entire time the equity markets were open. The HUI only finished down 2.15% on the day.
One wonder who the buyers were that were in there catching a falling knife. What do they know that we don't? Just asking.
The question I always ask myself when I see this sort of counterintuitive activity in the stocks, is whether the big buyer is loading up to make a profit on the next price rise...or are they going to use these cheap shares to dampen share prices during the next rally.
John Embry, amongst others, has always said that someone is manipulating the share prices of gold and silver stocks...and this is one possible way they could do it. I could also be looking for black bears in dark rooms that aren't there...so keep that in mind as well. But, having said that, you have to ask yourself this one question...why have the shares done so poorly in the face of massively rising gold and silver prices? Think about it. We'll find out on the next rally in both metals.