Sam Kirtley is playing “Monday Morning QB”—criticizing ownership and performance of gold/silver mining stocks (vs. the metal ETF’s, futures, options, etc.) at a time when the relative performance is at or near multi-year lows. Theoretically, he should apply the same principles to oil and the oil company stocks but he does not because oil stocks are much stronger, trading at yearly highs.

If you believe Dan Norcini and others (as I do), the hedgies are the major contributor to the sector underperformance with their hedged purchase of gold/silver and simultaneous short sale of the majors/junior miners. Yet, Kirtley misses this entirely.

When gold/silver break out again convincingly to new highs, the positive psychology will return to this sector and the miners will outperform the metal once again as has happened many times during this 10+ year bull market.

Silverbull50

http://www.marketoracle.co.uk/Article29198.html