Correction In Gold Mining Stocks – Myrmikan Capital

Gold mining stocks are facing their first large correction since the rally began in January. While the HUI gold miners index is up 96% since January 1st, it is 24% below the high made on August 4th. Gold Mining Stocks The biggest near-term threat to gold, as perceived by market analysts, is increasing interest rates, which the Federal Reserve has delayed for political reasons and now promises to commence after the election. As detailed exhaustively in these pages, Myrmikan disagrees with the conventional analysis. As rates rise, the bonds the Fed holds will devalue—the dollar will be stripped of the…