Precious metal miners: fathoming the abyss

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GuerrillaCapitalist
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Re: A Few Caveats

Gwyde:

Thanks for your informative reply. I assign no responsibility to you or any particular source of information. I'm simply gathering information as I contemplate a tiny investment in a few rock solid companies. I'm aware of the risks involved in these manipulated markets. I've had more than enough exposure to unscrupulous CEOs and CFOs. Hence I'm extremely leery of juniors and exploration companies. I'm looking for a very few companies in various sectors that have a proven track record.

With that said, my current favorite is Hecla. I like the fact they're an old company based in the States. Amazingly enough their production costs are below the spot price of gold, silver, and various base metals.

My only concern is potential government action, such as nationalizing the company or a confiscatory windfall profits tax. I think these risks are small, since the .01 are heavily invested in companies such as this.

Again, thanks for all you do to educate your fellow Turdites.

Be well, stay warm,

GuerrillaCapitalist

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Change ahead?

Broad stock markets are flat over the week, with a tiny net loss for the S&P off its ATH and a tiny progress for the Nasdaq Comp still aiming towards 5000. Against this background precious metals ultimately ended their losing streak. Until Tuesday, gold repeatedly slid well below $1200 on an intra-day basis to end above but grinding lower fractionally every day. Since Wednesday, the intra-day excursion goes the other way, with gains carefully massaged down but gold still creeping higher at the close. Extended shorts are entering defensive mode trying to contain losses.

It seems to make the difference for miners as the HUI ends the week at 192.1, up 4.23% against a tiny 0.8% weekly gain for the yellow metal closing at $1213.7. Thereby, HUI/Gold strengthens to 0.158. You find fresh graphs on the gold miner pulse blog page

A little more enthusiasm for silver and the PGM's, with Palladium up 4.9% to $815 over the week. The yearly GSA investor's day and the BMO Metals&Mining conference certainly support public interest for precious metal mining. With the PDAC 2015 upcoming, it's early days to talk about a weather change. Yet GDX enjoys the ride with a +4% weekly gain. Somewhat less enthusiasm for our benchmarks GDXJ (+2.86%) and GLDX(+1.77%). 

Our contributor driven explorer & junior miner spreadsheet performs in line with a 2.73% gain. The long-term loss is trimmed to 41.82%. Gains outnumber losses 13:8 on the list. MAG silver recovers from its first week loss and is the only pick now up since inclusion while Pretium is near break-even. Ivanhoe Mines (Ivanplats) and the Aussie Excelsior Gold are the double digit weekly winners, both trimming their long term loss.

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Precious metals wash-out

Broad stock markets peaked on Monday, with the Nasdaq Comp index closing above 5000 for the first time since the year 2000. They have been retreating as the week went by, with the Thursday bounce not too convincing. Precious metals have been grinding lower most gradually till the Comex casino open on Friday, when we witnessed a precious metals wash-out in the futures. Don't cry 'manipulation', the market raiders are making a fool of you while raking in your money... while the SEC is turning a blind eye.

Gold is closing the week down 3.71% at $1168.7 with the Friday plunge responsible for the lump part: 2.45%. Silver is closing the week at $15.93, down 3.86%. The Friday plunge added 1.67% to the loss, with the white metal closing well above the intra-day low. Platinum drops back to its 5-year low of only few weeks back. Only Palladium bucks the trend, being flat over the week, with Friday's loss eroding the gains of early last week.

Miners leveraged down the loss of precious metals. The HUI lost 13.3% over the week, with the Friday loss amounting to 7.47% to close at 166.6. The HUI/Gold ratio plunges to 0.143, which is where we ended on Jan 2.

You find fresh graphs on the gold miner pulse blog page. Miner weakness comes roaring back in. It's not the first time that we see metals and miners sell off right after the Toronto PDAC. The year-to-date gain of the HUI has slid to an insignificant 1.6%. Without any immediate turn-around, we may be down over 2015 early next week.

Our benchmark GDXJ is down 11.82%, while GLDX limits the weekly damage to 8.23%. With a 6.96% loss on the  contributor driven explorer & junior miner spreadsheet we are bluntly lucky, aren't we? Well many of our quotes are in CAD: the USD strength comes to our rescue. Only 4 stocks were sheltered from the general sell-off. Seven double digit losses, among them Sandstorm Gold and Argonaut Gold are the major drag on our list.

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Beyond the panic

After the Comex slide of gold futures on Friday Mar 6, precious metals weakness persisted, though percentage losses were little significant... as is the recovery on Friday Mar 13. The panic sell-off for miners halted by Tuesday, with a 'counter-trend' rally on Wednesday (precious metals made an intra-day excursion north to end lower again). On Friday precious metals recovered timidly, though the USDX gained 100 for the first time in several years. Miners responded with a relief rally. Too little, too late though: the HUI still is down 3.57% for the week, ending at 160.6, while the HUI/Gold ratio ends the week at 0.1387, which is where we ended 2014. HUI/Gold bottomed at 0.135 on Tuesday. You find fresh graphs on the gold miner pulse blog page

Among our benchmarks, GDXJ shed 4.35% over the week, while GLDX is down 3.7%. Silver miners still have a hard time, with the Global X silver miners ETF, SIL down 4.65%.

All of this doesn't bode well for our contributor driven explorer & junior miner spreadsheet, yet we limit the weekly loss to 3.45%. There are 6 picks up over the week, against 14 down, with Wellgreen Platinum flat. Argonaut Gold, Pilot Gold and Timmin's gold are the major drags on our list with a double digit weekly loss. Over the long haul, the list is down 47.72% with all list components in the red.

Allied Nevada (which has been on the list some time last year) filed for Chapter 11 protection against its creditors. Even if the miner manages to avoid bankruptcy, share holders will end up fleeced. Another victim of  subdued precious metal prices.

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FOMC pivotal

With the USD index above 100, precious metals continued weakening till Tuesday. Stock markets nevertheless kept steady. The FOMC meeting on Wednesday once more was pivotal, with the phrasing altered as expected. Yet as Janet Yellen made clear not mentioning 'patient' does not imply the FED now is impatient to raise rates. This called off any expectation for an imminent rate hike and precipitated a drop of the overbought USD. The impact on stock markets and precious metals was instantaneous.  This kind of shock treatment is what wakes up mining investors from their lethargy. Note: In foreign currency, the swing of precious metal prices was much less impressive.

Gold slid below $1150 on Tuesday to end the week at $1182. The yellow metal is up 2% for the week. After its impressive slide, silver adds 7% to close at $16.73 on Friday. The HUI index adds 5.95% ending at 170.2, after plunging to 158 last Tuesday. HUI/Gold firms to 0.1439. You find fresh graphs on the gold miner pulse blog page

Our benchmarks are diverging: nice gains on GDXJ (+7.5%) contrast with a timid recovery for GLDX (+2%). Our contributor driven explorer & junior miner spreadsheet holds the middle ground with a 5.53% weekly gain. We have 15 stocks up against 6 down this week. Argonaut Gold and Ivanhoe Mines (Ivanplats) lead the pack with +24% gains. With a 5% loss, Wellgreen Platinum is the laggard. Our list still posts an average loss of 44.8% and all picks are down since inclusion. With losses down to the single digits, Pretium, Oceana Gold and MAG silver come close to a break even.

In the benchmark section, the triple leveraged gold mining bear ETF (DUST) now is down since inclusion, though the HUI index itself still is down over 70%. It's a good illustration of how much these leveraged instruments lag over the long run.

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Leveraged exchange traded funds ...

Gwyde wrote:

...

Our benchmarks are diverging: nice gains on GDXJ (+7.5%) contrast with a timid recovery for GLDX (+2%). Our contributor driven explorer & junior miner spreadsheet holds the middle ground with a 5.53% weekly gain. We have 15 stocks up against 6 down this week. Argonaut Gold and Ivanhoe Mines (Ivanplats) lead the pack with +24% gains. With a 5% loss, Wellgreen Platinum is the laggard. Our list still posts an average loss of 44.8% and all picks are down since inclusion. With losses down to the single digits, Pretium, Oceana Gold and MAG silver come close to a break even.

In the benchmark section, the triple leveraged gold mining bear ETF (DUST) now is down since inclusion, though the HUI index itself still is down over 70%. It's a good illustration of how much these leveraged instruments lag over the long run.

A good explanation of why 3x leveraged ETF's over the long run necessarily perform less well than their reference index can be read in following 'timeless' blog post: Leveraged exchange traded funds: a trader's tool

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No relief for miners

American stock markets have been retreating for most of the week. The Wednesday slide made the 2015 YTD profits dwindle. Eventually we end the week with a timid recovery. An inverse weekly profile for gold, which continued strengthening till taking out $1200 on Thursday. Precious metals were however weakening into the close, a tendency which continues Friday. On balance gold still is up 1.35% to $1198.4 while silver adds 1.43% to $16.97. PGM's have been weak: Platinum still holds ground, but Palladium nosedived on Friday to finish the week down 5%, making a fresh 12 month low.

HUI/Gold closed at 0.143 on Friday March 20. By Tuesday, miners lost all enthusiasm about gold eventually taking out $1200 but were rather spooked by a weakening stock market. As gold eventually corrects on Friday, the damage adds up: over the week, the HUI is down over 2% to 166.2, with HUI/Gold now weakening to 0.139: Both are about flat for the year. You find fresh graphs on the gold miner pulse blog page

Our benchmarks once more are diverging: the loss on GDXJ (-2.2%) contrasts with a timid recovery for GLDX (+1.8%). Our contributor driven explorer & junior miner spreadsheet is down 1.25% to an aggregated loss of 45.5%.  On the list, we have 8 gains against 11 losses, with Mirasol and Miranda Gold flat for the week. With a 14.5% gain, Excellon Res. surprises to the up-side. There are no double digit losses, but a few come close: Wellgreen Platinum and Romarco minerals are the main drags on  the list.

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Flat despite relief rally

Broad stock markets have been losing momentum, with the 2015 YTD gain of the S&P now below 1%. We ended with modest gains on Thursday, going into the Easter Week-end.

Gold continued grinding lower into the new week, with more significant losses for silver and PGM's. However, platinum recovered from early losses on Tuesday, eventually rallying to a 2% gain by the close; palladium followed in the slipstream. This was the prelude for a general precious metal recovery on Wednesday Apr 1, with miners now breaking out after a six day losing streak. Metals nor miners could confirm on Thursday however. Over the last 5 trading days we end up marginally lower for both gold and the HUI miners index, with HUI/Gold about flat at 0.139. You find fresh graphs on the gold miner pulse blog page.

Our contributor driven explorer & junior miner spreadsheet is down 1.7% to an aggregated loss of 46.5%.  Last week, we ran out of luck, lagging our benchmarks GDXJ and GLDX both of which make modest gains since Friday Mar 27. On the list, we have 8 gains against 12 losses, with Continental Gold flat for the week. There are no double digit swings in either direction.

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Single day rallies alternating with grinding slides

Broad stock markets have been doing well since the start of the second quarter. Both the DJ and the SP broke above their 18K and 2100 thresholds again, while the Nasdaq Comp is at a sigh of 5K. European markets have been doing surprisingly good with double digit YTD gains. Even when translating to stronger USD the balance tips in their favor.

Little news for precious metals: single day rallies continue alternating with grinding slides. On balance gold is up an almost meaningless 0.44% over the week, making it to $1207 after the Friday rally. At $16.49, silver still is -1.6% south of where we ended before Easter. Both platinum and palladium started a nice recovery after disproportionate slides in March.

The HUI miners index is up 2.5% since before Easter, with HUI/Gold firming to 0.142. Miners draw some strength from low though stable precious metal prices in USD, strengthening their margins since for most operations, costs are in weaker currencies. You find fresh graphs on the gold miner pulse blog page.

Our contributor driven explorer & junior miner spreadsheet is about flat over the week. Among our picks, weekly losses once more outnumber gains, not exactly a winning recipe.  The benchmarks diverge: GDXJ makes a nice 2.7% gain, but GLDX is barely up.

I'm inclined to take Sabina Silver & Gold (SBB.TO) off the list. We've seen an initial gain on this one, but the news flow didn't confirm and the stock lost heavily in the 2014 autumn slide.

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Miner progress double crossed

European stock markets gapped down at the open on Friday after a sharp correction on Asian markets. Chinese market authorities, wanting to discourage speculation, have forbidden trading on margin on the OTC market. They also pointed at the possibility of making profits going short: reiterating the evident or invoking the daemon? Markets chose to be spooked. If there's any objective reason for a correction, it should be that crude is eventually recovering, dragging quite a few commodities up in its rally. Precious metals are yet another story.

Despite modest gains on Friday, gold ends the week fractionally lower: -0.25% at $1204.3. Silver even is off 1.6% to $16.23. The HUI index nevertheless makes a 3.2% weekly gain much supported by the USD-index well off its recent high. Miner progress is double crossed by a weaker USD: most quotes in CAD don't even hold ground. Our GMP gold miners index is down 0.4% over the week and -not surprisingly- the silver miners index slides another 2.4%. You find fresh graphs on the gold miner pulse blog page.

As announced last week Sabina Silver & Gold (SBB.TO) was taken off  our  contributor driven explorer & junior miner spreadsheet. Excelsior Gold and Excellon Resources accompany it to the exile sheet, which brings us to 18 list components. (It's less tedious taking off 3 miners at once than repeating the procedure at another occasion.)

Among our picks, weekly losses (14) once more outnumber gains (4) , not exactly a winning recipe.  To our credit, the USD index well off its peak adds a substantial head wind to our quotes in CAD.  On a comparable basis we would be down 1.9%, yet the removal of three poor performers results an apparent improvement to an aggregated loss of 44.9%.  The heavily beaten up Argonaut Gold recovers some of its loss (+9.6%).  Oceana gold slid double digits (-11.8% over the week) and is the major drag on our list performance.

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Miners sliding along with precious metals

While stock markets are steaming up to new highs (the Nasdaq composite first posted above its Y2K top on Friday), other assset classes are taking the hit. Precious metals are the obvious victims. Gold is down close to 2% over the week, closing at $1180.4/Oz. Closing at $15.76, silver takes a 2.9% hit. No shelter among the PGM's either, with Platinum down even 4% to $1123 over the week, while Palladium limits the damage to 1.8%... all despite the greenback well off its recent high.

Miners are sliding along with precious metals, with the HUI giving up 1.56%. HUI/Gold stays put at 0.1472. The GMP list based gold miners index is off 3.28%; with most quotes in CAD, it's a better proxy for our list. You find fresh graphs on the gold miner pulse blog page.

Not much hope for our  contributor driven explorer & junior miner spreadsheet: over the week we're down 3.09% (in line with the GMP index) to an aggregated loss of 46.6%.  Quoting in USD, GDXJ and GLDX do slightly better over the week. 

Only 4 picks are up against 14 down. IVN and MAG silver are the main gains, while Eurasian Minerals, Miranda Gold and Platinum Group Metals are the major drags on the list, down slightly over 10% last week.

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Miners starting to show resilience

Broad stock markets had a difficult week, with American indexes gradually giving way until Thursday, when the psychological round numbers broke down. The Friday rally brought us back above those 18K on the Dow, 2,100 on the S&P and 5000 on the Nasdaq Comp.  A bumpy week for precious metals, with a decent $1211 close for gold, followed by a three day slide. The yellow metal is down 0.2% over the week to $1177.9. Yet silver held on to a 2.1% gain, closing at $16.1 and even the PGM's closed the week without threading water.

Miners are starting to show resilience with the HUI up 3.5% over the week to 179.9. HUI/Gold firms to 0.1527: not much to be proud on, but it's a good start. With the USD index well off its top, the US miner quotes advance little more than their Canadian equivalents. Our GMP list based gold miners index is up 2.9%, but the silver miners index rallies by 6%, after a significant recovery of heavy-weight Tahoe Res. You find fresh graphs on the gold miner pulse blog page.

A first uptick also for our  contributor driven explorer & junior miner spreadsheet: over the week we gained 5.13%, bringing the long term loss to 43.85% or 37.2% when capitalization weighed. We have 13 picks up over the week, against 3 down with B2Gold and Romarco Min. at break even. Double digit gains for Ivanhoe Mines, MAG Silver, Pilot Gold and Continental gold are what separates us from the crowd. The three losses are minor.

When filtering out daily fluctuations and focusing on the weekly change, the stage seems set for a gold recovery:

  1. Gold is the only precious metal still down over the week (Silver, platinum and palladium are up)
  2. Miners start ignoring the further gold decline: the HUI is up 3.5% on a weekly basis. Even though it's flat on Friday, gains outnumber losses 7:3 on the broader GMP list based index of Canadian miners.

On previous occasions such coincidences have signaled the end of a losing streak for gold. Unfortunately it says very little on the extent or the strength of the coming recovery. 

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Miners torn between stock market weakness and metals struggling

Bond and stock markets had a hard time with a bump of the long term interest rates on both shores of the Atlantic. The USD well off its highs and crude recovering didn't support sentiment on European markets. In the UK, the Tory election victory paved the way for a turnaround. American indexes ultimately recovered on Friday to end the week up marginally (DJ and S&P) or flat (Nasdaq).

Precious metals made their anticipated recovery on Monday with a half hearted follow through on Tuesday, but then rolled over, to recover only on Friday. On balance gold adds a timid 0.8% over the week, closing at $1187.5. Silver adds 1.9% closing at $16.40. A similar bifurcation for the PGM's, where platinum is up only 0.9%, while palladium gains 3.4% after its Friday rally to $798.

Miners are torn between stock market weakness and metals struggling to hold on to any gain. The HUI index is down 2.18% over the week, making HUI/Gold slide to 0.1482. The ratio only started recovering after breaking below its 50 dma on Wednesday. You find fresh graphs on the gold miner pulse blog page.

Our  contributor driven explorer & junior miner spreadsheet performs in line: over the week we are down 1.77, bringing the long term loss to 44.84%. Seven list components are up against 9 down since last week, with Romarco Min. and Timmin's gold flat.  All components are still down since inclusion.

Ivanhoe Mines couldn't hold on to its recent gains and was the major drag on our list performance this week. 

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Miners cautious about Precious Metals rally

American stock markets made new highs two consecutive days. The week nevertheless started with a three day slide. As stock markets bottomed on Wednesday, gold started rallying and regained $1200. Comments were as such (Jim Wyckoff on Kitco):

Gold prices rose above the $1,200 mantle following disappointing U.S. economic data early Wednesday morning, but Jim Wyckoff says that there’s more to gold’s rise than poor data. He notes that there are “underlying factors lending support to the gold market, including a recent slump in the U.S. dollar index, some safe-haven demand due to Greece worries about their debt restructuring negotiations and also the recent rout in world bond markets.

Poor economic data would imply the FED to wait longer before raising rates... yet the rout in the bond market is exactly the result of rates rising all the same... Then there's the greenback: In January gold rose to its 2015 high with the USD strengthening. After losing all of its 2015 gains, gold now recovers 'because of the USD weakening' after its recent high. Explanations tend to be contradictory...

On balance gold is up 3.12% over the week to close at $1223.5 after choppy trading on Friday. Silver rallied 6.7%, closing at $17.5 and finally leaving behind months of weak silver prices and failing recovery attempts. PGM's lag, with platinum up 2.3% over the week but palladium weaker by 0.8%, giving way after its counter-trend gains early May.

Miners are cautious about the precious metals rally: whereas the HUI/Gold ratio strengthened in the first half of the week, seemingly in anticipation of the PM rally which was to follow, on Thursday miners couldn't confirm. Moreover the HUI closes with a 0.5% daily loss on Friday. Over the week the HUI is up 3%, with the HUI/Gold ratio hence flat (after its bump).  You find fresh graphs on the gold miner pulse blog page. In the perspective of miners still cautious about the gold rally, an interesting analysis is following : Gold and the miners: identifying the bear market logic

Our  contributor driven explorer & junior miner spreadsheet outperforms the HUI, but is in line with gains on the benchmarks GDXJ and GLDX: over the week we are up 5.54%, reducing the long term loss to 41.78%. Fifteen list components are up against three down since last week.  Oceana Gold and MAG silver now are the first two miners up since inclusion on the list. The best performance over the week is for Continental Gold and (again) Oceana Gold, both up about 16%. Nano-cap Miranda Gold is the major drag on our list with a 11% swoon and making a fresh 52 weeks low. It hardly affects the cap weighed return, where the loss now is cut to 33%.

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Miners sliding again

American stock markets were almost flat last week. First quarter results had little impact on the market indexes. The rise of the CPI coming in higher than anticipated should have been supportive for gold... if the twist on the news didn't pull the rug from under the trader's feet: the first rate hike of the FED now may come earlier than previously expected. The USD recovered after its pull back. Another factor supportive for the USD was the ECB announcing it's going to front load its bond buying program in order to compensate for sluggish trading volumes during the summer months.

Gold weakened 1.44% since Friday May 15, closing at $1205.9 while silver is down 2.4% to $17.08. Even though gold barely is off its recent highs in most other currencies, miners have been sliding. The HUI is down 5.5% over the week, causing HUI/Gold to pull back to 0.142. You find fresh graphs on the gold miner pulse blog page.

Our benchmarks are off only slightly less bad: GDX is down 4.3% over the week, while GDXJ limits its loss to 2.5% and GLDX is off 3%. All of this doesn't bode well for our contributor driven explorer & junior miner spreadsheet, yet we limit the damage to 0.7%. The long term loss stands at 42.2%, with Oceana gold and MAG silver posting a long term gain since inclusion. Over the week, 5 miners of our list are up and 9 are down, with 4 flat. Nice weekly gains for Almaden Minerals, Continental gold and Ivanhoe Mines allowed these explorers to recover some of their long term loss. Eurasian Minerals post a double digit weekly loss and is the major drag on our list.

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Blame it on the greenback

After a lackluster week, American indexes are down fractionally: the S&P lost 0.88% over the week, while the Dow is down 1.21%. The Nasdaq composite limited the loss to a mere 0.38%. Among precious metals the damage is somewhat larger, with gold down 1.32% to $1190 and silver giving back 2.22% to $16.70. Platinum had a pretty awful week with the loss extending to 3.23% wheras palladium only got negative for the week on Friday: -0.51%. The USD index is in an uptrend, which helps explaining the weaker stock market and lack of pricing power in the commodity and precious metals areas.

All of this doesn't bode well for miners and the HUI index indeed is down 2.6%, making HUI/Gold slide somewhat further to close at 0.1401 after bottoming on Wednesday below 0.138. You find fresh graphs on the gold miner pulse blog page.  If speaking about miners outperforming, please use the past tense...

Among our miner ETF benchmarks, weekly losses vary from 1.26% for GDXJ to 3.12% for SIL, the silver miners ETF. We've been lucky to keep our feet dry, making a fractional weekly gain on our contributor driven explorer & junior miner spreadsheet. We've got 8 gains on the list against 7 losses, with 3 stocks flat. The long term loss stands at 42.15%. The two long term gains are Oceana Gold and MAG silver, both add little to their gains. There are no double digit declines nor any outstanding gains this week.

On this occasion, I wish to recall the old thread Selecting explorers and Junior miners, named after the original blog article used for back-up and detailed information. Back then, the list was open for any contributed picks, and it still is. We're down to 18 selected miners and we've got a slide behind us; hence this may just be a suitable moment to put some more money at work. Since all list components have been turning south (gains on only two of them are recent), I buried the idea of having a contributor nick attached to the picks: no shame if it doesn't work out. 

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No place to hide ...

The USD rally ran out of steam.  Yet stock markets didn't profit as interest rates have been creeping higher, taking down the bond market. Precious metals also continued their downtrend: there is no place to hide. Cash is King, but what currency remains to be seen.

Over the week, gold lost 1.51% to close at $1172, for silver, the damage adds up to 3.4%, closing at $16.13. Platinum is down 'only' 1.26%, but puts down a fresh 5 year low at $1095, with the gold to platinum ratio at 1.07. Palladium slides 3.23%, yet still keeps up materially stronger over the long haul than the other precious metals. The HUI miners index lost 4.36% over the week, making HUI/Gold weaken further to 0.1361. You find fresh graphs on the gold miner pulse blog page.  If speaking about miners outperforming, please use the past tense...

Among our benchmarks: GDX, GDXJ, GLDX the damage is comparable: GDX slides 3.8%, GDXJ is off 2.8% and GLDX weakens 2.3%. Our  contributor driven explorer & junior miner spreadsheet performs in line with a 2.75% loss, bringing the long term loss to 43.74%. There only are 4 picks up over the week, with 14 down. No double digit losses nor gains. MAG silver dissipated its long term gain and now quotes below break-even. That leaves us with only Oceana Gold as the long term gain to hold on to.

No miners or explorers have been suggested. Guess the potential contributors lost heart with the miner bear market now in its fourth year...

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Gold and HUI index bifurcating

Not much ado on American stock markets, where the main indexes are almost flat over the week. In Europe, the Greek drama keeps on eroding prior gains. Among precious metals, daily gold rallies failed by the close with the disappointment wearing out mining stocks. Gold and HUI index are bifurcating, with the HUI down 2.3% over the week to 155.8, while the yellow metal gained 0.79%, closing at $1181.3.

Bifurcation also among precious metals, where silver slid 1% to $15.96. No improvement for the PGM's either: the 0.2% loss for platinum implies yet another 5 year low, while palladium slid 2%. You find fresh graphs on the gold miner pulse blog page

Among our benchmarks: GDX slides 1.49%, GDXJ is off only 0.64%. Our  contributor driven explorer & junior miner spreadsheet performs in line with a 1.34% loss, bringing the long term loss to 44.50%. There only are 3 picks up over the week, with 17 down.  Among the gains, MAG silver again quotes above break-even, joining Oceana Gold with the long term gains.

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Joined: 08/29/2011
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Miners failing to catch up with gold

American stock markets remain range bound, advancing fractionally over the week. With no surprise at the timing of the FED rate hike, gold rallied on Thursday, easing only little on Friday to close the week at $1200.3, up 1.6%. Silver lags with a 0.75% weekly gain to $16.08, while the PGM's continue disappointing: another 5 year low for Platinum on Tuesday and closing the week down 0.8% while the slide for Palladium aggravates to 4%, closing at $706.

Miners are failing to catch up with gold: the bleak 0.3% advance for the HUI index causes HUI/Gold to further weaken to 0.1302. We 're back below the level of the 1998-2001 gold miner bear market bottom on HUI/Gold. It hardly comes as a surprise that the HUI index is down 4.7 year-to-date. You find fresh graphs on the gold miner pulse blog page

Among our benchmarks: GDX gains a timid 0.49%, while GDXJ adds 3%, but the gold explorer ETF: GLDX disappoints with a 0.9% slide. Our  contributor driven explorer & junior miner spreadsheet performs in line with a 0.7% gain, trimming the long term loss to 44.15%. There are 8  picks up over the week, with 9 down and Miranda gold flat.  Double digit gains for MAG silver and Continental Gold make the difference. Our PGM exposure continues being a draw back.

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Gwyde

readingalot
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Joined: 06/15/2011
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First pour at Rubicon?

Sorry to interject here. Obviously the sector sure could use a ray of sunshine. I know I would like to see one after all this time. I haven't posted in about a couple of years.

The stock I follow most closely, Rubicon Minerals, has posted videos from weeks ago where they were sending low grade ore through their newly constructed mill. The first pour seems close. It would be nice to see the market enjoy the milestone. Investors have had a long wait.

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