"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


Thursday, November 3, 2011

HUI is continuing to outperform the broader equity markets

The lower interest rate environment (the ECB cut rates and the Reserve Bank of Australia did likewise) is proving to be a boon for gold. That is helping pull silver higher even as it waffles back and forth between risk on and risk off trades. The end result is that a fairly good stream of buying is coming into the gold shares, many of which remain undervalued in the eyes of prospective buyers.

The gains in the mining sector are outpacing the gains in the broader equity markets while on downside trips they are holding better. It would be a pleasant change if there were a growing group of investors who were viewing gold and silver shares as defensive holdings in the current economic climate.


  1. Love to bet on undervalued gold miners, but the gorilla in the room has me too scared at present. Waiting to see if the Greek fiasco leads to Italian, French, Portugal....bigger fiasco, setting off the CDS fires leading to the teepee at Goldman Sachs. If and when the world printing contests secures a 6 month window, will get all in. Thanks Dan.

  2. A great chart to put up would be MFG. Basically, less than 2 weeks ago, all investors were assured that their money was safe. If you put up a 5 year chart on MFG, you would find the stock went from $30+ to today....$.27, yes that is $35 dollars to .27 cents. DELEVERAGING, and stealing. COMMINGLING OF FUNDS. Trust is hard to build in this market. Waiting...watiting....


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