Gold Miners/Copper Miners Ratio Is Interesting

June 28, 2018

The GDX/COPX ratio has broken above the 50 & 200 day moving averages and is still going, despite gold’s ignominious state at the moment.

Here’s what gold (GLD) looks like today.

Here is what copper looked like at yesterday’s close (in-day today it is a hair under 3, at 2.9981/lb). And yes, that is important support.

Against the broader Industrial Metals complex GDX is weaker. But XME includes – you guessed it – gold miners and gold royalty companies along with metal service centers and the like. In other words, it’s not just a pure play on IM miners.

All in all, I do not have an overly bearish feeling about gold and its miners at this time. In fact, I don’t have a bearish feeling at all, even though traditional sector indicators like HUI/Gold and Silver/Gold have sagged over the last few days. That is because with the gold sector you think about being brave when the blood is flowing, not when the inflationary gold bug touts are leading the charge.

NFTRH.com and Biiwii.com

Gary Tanashian of biiwii.com successfully owned and operated a progressive medical component manufacturing company for 21 years, keeping the company’s fundamentals in alignment with global economic realities through various economic cycles.  The natural progression from this experience is an understanding of and appreciation for global macro-economics as it relates to individual markets and sectors.

A sheet of gold can be made thin enough to be transparent

Gold Eagle twitter                Like Gold Eagle on Facebook