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A Tsunami of Selling in Gold Miners Is About to End

By Tom Winnifrith | Friday 16 June 2017


 


In this week's podcast from Palisade Capital Frank Holmes discusses how the GDXJ became just a buying index with no separation of value and little understanding of who was doing well fundamentally. The re-balancing has created a large uncertainty with five billion dollars initially moving into the space and now three billion dollars leaving it. This will affect many of the small and mid cap producers. The investment money is being reallocated to the big names like the Barricks, the Newmonts, and the Goldcorps of the world. Holmes argues that you should use this as an opportunity, as some of these stocks have been sold down indiscriminately even though they are reporting phenomenal fundamentals.


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