By Jeb Handwerger
ETF Daily News
When it looks as though things couldn’t get worse for precious metal mining equities, that may be just the time to buy for contrarians. Not only are the junior miners sloping to historic decade lows, but gold bullion which has held up considerably well in comparison has been hit hard recently by short selling, bearish bank reports and margin calls.
Now after this recent decline there is a palpable sense of panic and fear throughout the resource markets. This is the biggest decline since 2008 and 2003 when all the bad weather bears sold and missed out on 200% reversal moves in the mining indices.
Don’t make a similar mistake now. As I stated before, we should see a bounce. Hold on and add as we may be approaching a major bottom. I wrote recently that we may see a very powerful rebound as short covering and record investment demand returns to the precious metal sector.