Jordan Roy-Byrne of TheDailyGold.com believes the existing gold and silver stock indexes, such as the HUI or the GDX, are not giving an accurate picture of where metals stocks are really heading. They’re highly weighted towards the major producers who have been underperforming for years. As a result, the good performers’ results have not been accurately reflected or recognized. Jordan doesn’t necessarily attribute their under-performance to manipulation but rather sees the market asserting its fundamentals.
This is a reflection of the phase of the bull metals market. Consolidations can last for several years and valuations can vary. However, you should remember to look at technicals and sentiments. A lot of breakouts in the sector tend to be false. Gold has bottomed so many times in the last couple of years, on the day where it appeared to make a technical breakdown. We are undeniably seeing a very difficult market, and according to Jordan, we are within 2 weeks of a very important bottom. You have to wait for things to reach an over-sold point, these are the times when you want to buy and take advantage of the manipulations. Once the markets get extremely oversold, the manipulators buy to help themselves. You want to be on the correct side of this, so DON’T FREAK OUT and sell!