RE: the only plausible argument I think the single biggest reason is most investors no longer invest in companies but rather buy ETFs. Very few investors seem to know how to value individual companies. The result is when the talking heads are saying gold is going to go down these "investors" sell their gold ETF or buy the inverse ETF. Sandstorm gets lumped in with the gold companies. Another common trend is the blind reliance on TA. Sandstorm again lumped in with the gold stocks has broken past significant resistance and is therefore a great short candidate based only on TA. Eventually fundamentals win but for now its all about momentum.
What's commical is the news media's attempt to explain the rise and fall of gold. When it was rising it was due to the weakness in the economy which would lead to more stimulus which would devalue the dollar therefore making gold attractive. When gold started it's fall it was said to be due to the economy strengthening and therefore less stimulus etc. The most recent plunge was said to be due to a slowing Chinese economy which would in turn negatively impact economic growth elsewhere. HUH???? Earlier they said weak growth was good for gold but now they say weak growth caused golds fall. LOL What they should really write is they have no flipping clue and the market is in truth very irrational right now.