Gold stocks have managed to gain some ground against their physical counterpart since bottoming out in early June, but still have a lot of work ahead of them to recapture the levels they set last year in November.
It will be interesting to see what kind of effect - if any - the new Hong Kong Mercantile Exchange will have on gold and silver prices over the coming days and months and the stocks making up the two sectors.
It should be noted that the reversal in GDX coincided with a bounce in the stock market. Gold stocks still seem far too dependent on the overall performance of the market to get completely comfortable putting all our eggs into one basket.
Gold Stocks vs Gold
