May 12th, 2009

Something Happened to Gold Miners Yesterday

The fire is burning under the precious metals/miners pot and something big is about to boil. If this keeps up the lid could explode off the whole thing. Take a look at yesterday’s action in some of the larger miners (these are a few examples; many other miners had similar charts):

  • IAG
  • GOLD
  • GG
  • GFI

You’d think that during the day, the big money guys were saying to each other that this deflation gig had run long enough. It was time to start the inflation and weak dollar second act. At around, and 3:30-3:45 the curtain goes up after rehersal that morning, they start pounding out the buy orders pushing the stocks up 10-15% on relatively heavy volume.

But while this was going on with the miners, nothing similar was happening with gold commodity itself:

Since most of the volume in the miner stocks came in the early morning and late afternoon is it safe to assume that much of it came from Asia? Just a hunch. But I hope it continues because I just bought some calls on one of them.

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