The precious metal miners are under the spell of ponzinomics. Spot gold is steady at the important level of $1385. Gold has been at this support level for some time. It saw a massive selloff today, but stayed above support due to the dollar's weakness. The dollar is under massive duress.
But in the short term the corrilation is not corrilating for gold on spot and equity in gold producing/outfitting corporations. Somehow it is the miners that lost out. You would think that with the supply curve moving ever more so, and with a stead yprice, gold miners and the like would increase in value. That has not been the case for the first two weeks of January. '11 has started off as a dud.
The Mizers are buying the F'n dip, of course, but the average investor may have lost their lunch. '11 has not churned profit for anything except platinum and oil (hint, hint) and the only exciting news are the rather large mergers and aquisitions.
Gold may be down from where New Years lovers exchanged gifts, but it is merely part of any long term chart. What goes up must come down. When gold goes down it is from pulled from below by Bernanke and other market manipulaters from the President's Working Group on Financial Markets. It is water torture.
Gold and her sisters, two, are strong and we have planned an escape. From the forest we moved in silence and only spoke in code. Since January 1st we have marched the descent that will bring us to where the sisters are kept. Now we break in the door, and take the three home. The glory of her Kingdom shall be done.