Interesting article on PM mining stocks and volatility vs. risk.

Shaddam IV · Jul 20, 2011

An article that I found very interesting, caveat is that he bases a lot of his theories on central bank manipulation.

http://seekingalpha.com/article/277...e-volatility-of-gold-and-silver-mining-stocks

The number two global myth in the investment world is the belief that volatility is directly correlated with risk. On the surface level, this seems like a logical conclusion to draw from volatile assets. If assets rise and fall within several standard deviations of the norm, then massive speculation must be occurring within these asset classes and investors must not be investing in such asset classes based upon fundamental values, right?
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If we look at the chart below, we can clearly see the recent underperformance of gold and silver mining stocks that has led the financial media to inundate the public with declarations that mining stocks, as an asset class, are dead weight and should be avoided at all costs.

However, if you remove the emotion of "fear" from this conclusion and inject the explanation of deliberate banker price suppression schemes executed against mining stocks, a completely different take on the asset class of mining stocks will emerge. You may just startlingly conclude that the "best in class" mining stocks are grossly undervalued and a great buy this summer season whether or not the bottom has been put in for the summer, versus the commercial investment industry conclusion that they are dead weight.
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Interesting article on PM mining stocks and volatility vs. risk.

Shaddam IV Well-Known Member Silver Stacker

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Interesting article on PM mining stocks and volatility vs. risk.

Shaddam IV Well-Known Member Silver Stacker

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