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WHY HAVE MINING STOCKS LAGGED?

I don't know. But here are some possible reasons:

1. In the past, where money managers were prohibited in their investment policies from investing in commodities, they participated by owning the shares of major mining companies such as Newmont, Agnico-Eagle, Barrick, Hecla, etc.

2. Then, they added added international mining companies to their portfolios, when allowed.

3. Back then, there simply weren't the number of public mining companies available to invest in, beyond Jr. Miners and speculative plays.

4. Today, there are many more mining companies to invest in and that is one reason we are seeing an ongoing consolidation of public companies.

5. But, the biggest single reason may be that the recent introduction of Precious Metals ETFs, such as GLD & SLV, has taken investment dollars away from mining shares. It allows individuals to invest in the metal without individual company risk and it allows Mutual funds to partcipate in commodities without buying futures contracts or options on futures.

6. However, ETFs are trading vehicles. The stock market will eventually fall. Once it does investors will want to make money elsewhere and start to bid up leveraged vehicles such as gold/silver mining stocks and coins.

ALSO READ: WHICH MINING STOCKS I LIKE NOW