Sure doesn’t seem like it, does it?
Here’s the numbers as of today:
S&P 500: +1.9%
Russell 2000: -4.5%
HUI miner index: +9.6%
The sentiment numbers for gold, silver and the mining stocks are almost as low as they were in June 2013 near the bottom of the big, manipulated price correction. As you can see, the actual performance of gold and mining shares has diverged in a meaningful way from the negativity sentiment indicators.
This suggests to me that not only is the general investment community bearish on the precious metals, but they are incorrectly bearish. In other words, although it’s difficult to see what the catalyst will be, the sector is set up to explode higher. It’s just a matter of when.
While we don’t know what the spark will be, the massive pile of tinder that will catch the spark is growing bigger and drier by the day…