Underperformance of Gold Miners (GDX) Compared to Gold (GLD) I’m getting my numbers from the ETF’s GDX vs. GLD.
GLD has typically outperformed GDX recently, which partially explains TAHO’s underperformance. So this could just be called Market Risk, but traders are going long various market groups and short or ignore the Gold Miners. Gold Miners have bad sentiment. Really, on average, investors don’t want miners. The GDX is/has been shorted and is way under-owned. So the rubber band has been stretched too tight and today, for the first we see a change!
GDX out performed GLD. Here are the numbers:
GDX (Miners) 21.57 +.22 = +1.03% vs.
GLD (Gold) 124.72 -.28 = -0.28%
So GDX had positive performance and investors/speculators preferred to buy mining stocks for a change.
cghonda1