Throughout most of the day, the mining shares were very strong moving higher in conjunction with gold bullion, and to a certain extent, silver. AS the session moved into the afternoon hours however, the breach of 1150 in the S&P 500 was apparently too much too keep the money flows coming into the mining sector which then surrendered all of its gains and dipped slightly into negative territory.
It might be a good time to note that with crude oil moving in a totally different direction than gold, one of the major costs of mining companies, energy, is falling off while the price of their product, gold, is moving higher. That looks to me like an ingredient for even better profits moving forward.
Note the ratio chart below showing the extreme level to which the undervaluation of the mining sector is reaching.
"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
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