I have been a long term holder of gold and view it as a currency surrogate. The miners are a different animal altogether, and while I do own some mining companies in the form of Fidelity Gold (FSAGX) in my retirement accounts, GLD is my favored vehicle. I also have SLV.
The charts, however, are showing some signs of technical weakness and this may get worse as macro factors weigh on the cost structure of gold mining companies. If oil rises, gold miniers will experience margin pressure since they use an inordinate amount of fossil fuel in production. As the stock market recovers, interest in owning gold will wane.
Gold sentiment has been bearish for a while with advertisements to buy gold becoming commonplace. This usually occurs near the top of the market.
