Author: Biz India

By Tom Essaye Wednesday, June 6, 2012 One of the biggest events of last week was the May jobs report, which was a huge disappointment. Markets tanked on the release, with the Dow and Nasdaq giving up all their 2012 gains. Gold was the most logical winner … It surged on the release of the data as traders assumed that the weak jobs number means a higher probability of additional QE from the Fed and other global central banks. And more QE will stoke inflation’s flames. The primary beneficiary: Gold! As a contrarian investor, though, I always try to look beyond the obvious winner of an event such as the jobs number. I want to find the not so obvious winner from something like additional QE. And I think gold mining stocks may actually be a bigger beneficiary than gold bullion. More often than not, I wouldn’t make such a case. Having traded and invested in gold mining stocks for a number of years, I can say from experience they are one of the most frustrating sectors of the market. And up until a few weeks ago, this year has been no exception. But in mid-May, as gold made a bottom around the $1,530 level, gold stocks all of a sudden started rising, despite a falling stock market — something that rarely happens. The reason for the rally wasn’t...