http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/11/15_Norcini_-_The_World_Is_Balancing_On_A_Razors_Edge.html

"But as I mentioned earlier, what has me concerned is the mining shares continue to drop and I mean drop significantly. Fundamentally, what is happening is you are further stretching that rubber band of undervaluation in terms of the mining shares vs gold. Take a look at the HUI to the gold bullion ratio. That thing has plummeted again. We are back to the extreme levels we witnessed in summer of this year."....

"Back to last summer, at that time we saw the mining shares begin to attract value based buyers. It remains to be seen if these value based buyers are going to come into this market when you have weak earnings from Newmont and Barrick. The bottom line here is the hedge funds are once again buying the bullion and selling short the shares in the mining sector. This is where the pressure is coming from.

We will also see tax loss selling in this sector for the remainder of the year. So it will take something to reverse this trade. It will most likely take a sharp rally in the stock market which would carry the shares with it as well. The other possibility is some upside earnings surprises from key mining companies. This would help push some of these hedge funds out of these short positions they have in these shares." .....