metal vs the miners...have the ETFs eaten the miners lunch?

[murphy_p_t]

A few years ago, there was a thread asking about the impact of GLD on the price of gold.

As a VP play, I'm considering the precious metals complex as I think Au, Ag could take off in the coming 12 months.

In theory, it seems the miners could give out-performance vs the product (metal). However, my recollection is that this wasn't the case in the run-up to the 2011 peaks in gold/silver.

Looking at this chart, I notice that the breakdown in the longer trading range seems to line up nicely with the introduction of GLD. http://kingworldnews.com/kingworldnews/ ... story.html

Is the introduction of GLD a primary cause of the breakdown of the trading range for the miners? If so, does it make most sense, in VP plays to just stick to the bullion / bullion ETFs and skip the miners? If not, what is the case / likelihood that the miners will outperform the metal price moving forward?