2009年3月30日 星期一

Long Gold short Gold miners?

No matter how I look at it, the gold mining stocks overreact by a large margin. While I am quite contend with the theory of using gold to hedge against the fed printing machine, those gold miner stocks are pure speculations.

I do not think a retail investor can short the gold mining stocks in a 1 to 1 ratio with the gold ETF, which is sad. My friend, if you can do it, I will gladly open an account tomorrow. At least now i have an example to demonstrate why this is necessary....











Orange is the gold ETF, which is suppose to follow the exact movement of gold price.

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