Gold and silver came roaring back last Thursday; gold is confirming with a 3.04% gain over the week, closing at $1314.7 and silver even is gaining 6.15%, closing at $20.88 on Friday. Miners are rallying, leveraging up the gains of the metals. The HUI firms 6.54% since last week: HUI/Gold firms to 0.179, a level nearing the mid March high. The weekly update of the GoldMinerPulse page provides more graphs and data.
The contributor driven explorer & junior miner spreadsheet mirrors the broader gold miners index, with a gain of 5%. There are 14 list components up, against 6 down with 3 more flat over the week. Moneta Porcupine made it above break even (despite correcting on Friday) which brings us back to 5 long term gains on the list. The long term loss on the list now is mitigated to 25.8%. Cap weighed that is reduced to 24.9%. Including all losses and profits on list components having left the selection, we are still down close to 32%. That last number still compares favorably to whatever ETF useful as a benchmark: GLDX is down nearly 71% and GDXJ lost over 68% since we started the list. Six list components are up double digits over the week. None of the losses exceed 5%.
After two weeks of major progress, both metals and miners have been consolidating. Last Tuesday miners were down sharply with the broader stock market, despite metals holding firm. Over the week, both gold and silver are holding ground: Au (+0.1%) closing at $1316 and Ag (+0.2%) at $20.92. Silver has been outperforming gold, but corrected on Friday. The HUI index held up last week, but our gold-miner-pulse based Canadian miners index was down. HUI/Gold holds firm at 0.1798, a level near the mid March high.
The update of the GoldMinerPulse page provides more graphs and data. The contributor driven explorer & junior miner spreadsheet mirrors the GMP based gold miners index, with a 2% weekly loss. Seven picks are up, while 14 are down, with Eurasian Minerals breaking even. Tanzanian Royalty Exploration (TRX) was the major drag on our list, with a 10.6% loss over the week. Pretium Resources and Monument Mining lead the upside with gains around 7%. Little changes of winners&losers over the long haul: only Moneta Porcupine is touching down to break-even.
With Canada day and Independence day, next trading week is going to be a short one, probably with light volume. I won't make any update, unless we have a $100 move of gold in either direction.
Broad stock markets ran out of steam last week, with analysts looking for any excuse justifying the slide of the S&P from its recent all time high. Blame it on the Holy Spirit, in this case the Portuguese 'Banco del Espirito Santo'. With bond rates again retreating, the opportunity cost for holding precious metals is almost non-existing. Only the seasonally weaker perspective is preventing speculators to jump in with both feet. Since July 3 (5 traing days) gold firmed 0.91% closing at $1339 on Friday, while silver added 1.51% to close at $21.45, less than $0.50 below its 2014 high. The HUI index is making its rocky ride uphill. HUI/Gold peaked at opening on Thursday. Gold miners then were carried along in the broad stock market slide and ignored the metals firming. We got another recovery to end the week with: HUI/Gold now stands at 0.1845, up 0.003 since June 27 (last posting).
The update of the GoldMinerPulse page provides more graphs and data.
A decent recovery for our contributor driven explorer & junior miner spreadsheet, up 6.53% since June 27. The aggregated loss is trimmed to 23.13%. There still are 4 miners up over the long haul with Moneta Porcupine at break-even. Eurasian Min is the only list component weakening 3.4% since 2 weeks ago. We have 19 winners and three stocks unchanged. There are six double digit gains, lead by Continental Gold, up 19% over two weeks.
Please say it isn't so..
Quote: J.P. Morgan’s Gold Stocks to Buy After Survey Produces Surprising Results By Lee Jackson July 16, 2014 8:45 am EDT ... Read more: J.P. Morgan's Gold Stocks Include Agnico Eagle Mines (NYSE: AEM), Barrick Gold (NYSE: ABX), Eldorado Gold (NYSE: EGO) - 24/7 Wall St. https://247wallst.com/commodities-metals/2014/07/16/j-p-morgans-gold-stocks-to-buy-after-survey-produces-surprising-results/#ixzz37lvMjoyK
... B2Gold Corp. (NYSE: BTG) is a small cap name rated Overweight at J.P. Morgan that could bring investors big results. ... Eldorado Gold Corp. (NYSE: EGO) is also rated Overweight at J.P. Morgan. Read more: J.P. Morgan's Gold Stocks Include Agnico Eagle Mines (NYSE: AEM), Barrick Gold (NYSE: ABX), Eldorado Gold (NYSE: EGO) - 24/7 Wall St. https://247wallst.com/commodities-metals/2014/07/16/j-p-morgans-gold-stocks-to-buy-after-survey-produces-surprising-results/#ixzz37luUMdmj
By Lee Jackson July 16, 2014 8:45 am EDT
Read more: J.P. Morgan's Gold Stocks Include Agnico Eagle Mines (NYSE: AEM), Barrick Gold (NYSE: ABX), Eldorado Gold (NYSE: EGO) - 24/7 Wall St. https://247wallst.com/commodities-metals/2014/07/16/j-p-morgans-gold-stocks-to-buy-after-survey-produces-surprising-results/#ixzz37lvMjoyK
B2Gold Corp. (NYSE: BTG) is a small cap name rated Overweight at J.P. Morgan that could bring investors big results.
Eldorado Gold Corp. (NYSE: EGO) is also rated Overweight at J.P. Morgan.
Read more: J.P. Morgan's Gold Stocks Include Agnico Eagle Mines (NYSE: AEM), Barrick Gold (NYSE: ABX), Eldorado Gold (NYSE: EGO) - 24/7 Wall St. https://247wallst.com/commodities-metals/2014/07/16/j-p-morgans-gold-stocks-to-buy-after-survey-produces-surprising-results/#ixzz37luUMdmj
Last week I've pointed to the seasonally weak summer doldrums, frightening gold longs to get in both feet. That perspective developed Monday to Thursday morning with a major gold slide off its recent high. Some lunatic separatist Russian militia in the eastern Ukraine then decided firing an air-strike missile without bothering whether the target was a civilian airliner, or a military flight, friend or foe. Gold easily regained $1300 and silver $21. On Friday the down draft resumed, with gold closing at $1310,9, down 2,1% over the week and silver ending at $20,89, down 2,6%. American broad stock markets are up slightly, despite the shake-up on Thursday.
Gold mining investors were little impressed by the (anticipated) slide of precious metals; the HUI was down 1,69%, making HUI/Gold firm to 0,185. The update of the GoldMinerPulse page provides more graphs and data. GDXJ and GLDX, the benchmarks for our list lose 4% or more. Our contributor driven explorer & junior miner spreadsheet holds the middle ground down short off 3%. The accumulated loss again aggravates to 25.42%. We have only 4 stocks up on the list, with 18 down and Excellon Res flat over the week. There are no double digit movers nor shakers, with not much specific miner news.
Over the long haul, we still have the same four stocks (PVG, OGC, PLG and SSL) up, against 19 down (no more break-even). Four picks face a long term loss only in the single digits.
Of the miners cited in the article referenced to below, only B2Gold (BTG) would qualify for our list. I may consider it later on.
Last week the downtrend of precious metals resumed as anticipated, but we got a nice reversal on Friday. On balance gold only is off 0.2% over the week, closing at $1308.3, while silver eases 0.67% to close at $20.75. Gold miners likewise were down Monday till Thursday with the Friday rally covering much of the loss earlier in the week. On balance, the HUI index is down 0.53%, making HUI/Gold ease only marginally to 0.1848.
The update of the GoldMinerPulse page provides more graphs and data. GDXJ and GLDX, the benchmarks for our list are down 1.85% and 3.56% respectively. Our contributor driven explorer & junior miner spreadsheet holds the middle ground off 1.23%. The accumulated loss again now stands at to 24.07%: the 'optical improvement' from -25.42% being the result of my adding a new pick: On Wednesday I've taken on board B2Gold (BTG, quoting in USD) at the close $2.67. The stock quoted lower all Thursday: I didn't pick a bottom you could impossibly buy at. Yet we enjoyed a decent reversal on Friday, making BTG end its first half week well out of the red.
We have 11 stocks up on the list, with equally 11 down and two more flat over the week. Pretium suffered heavily from profit taking after its decent rally and is down over 15%, thereby giving up its long term gain. Romarco Min. adds 10% and cuts its long term loss to the single digit range.
Over the long haul, we now have six stocks up, against 17 down with Moneta Porcupine at break-even. Three picks face a long term loss only in the single digits.
We 've witnessed a pull-back on broad stock markets this week. For precious metals this almost means a copycat of last week's price trend. Gold couldn't consolidate previous Friday's gains on Monday and gradually gave way as the week went by. On Thursday we got the real plunge, followed by a Friday recovery, starting shortly after the NYMEX opening. Silver and Platinum group metals did not follow gold's Friday reversal. On balance gold is down 1.08% last week, closing at $1294.2, while silver weakened 2.17% to $20.3.
Miners strengthened on Monday, but then followed the metal down, with harsh losses as the week went by. The Friday relief rally is not too convincing, since a significant minority of mining stocks kept on their downward trend. The HUI index is down 1.95% to 237, making HUI/Gold retreat a little to 0.1830. The update of the GoldMinerPulse page provides more graphs and data. Our contributor driven explorer & junior miner spreadsheet now stands at a 25.10% loss, down in line with the HUI. The downtrend of precious metals inspired me to take on board another project generator, Mirasol Resources (MRZ.V), with focus on Latin America. It enters the selection at the Friday Close of C$1.31.
Our "long term winners" suffered during last week's downturn, especially the Platinum and silver miners had a bad week. We are down to only two long term winners: Oceana Gold and streamer Sandstorm Gold. Miranda (MAD.V) and PLG touch down to break-even, while Ivanplats (IVN.TO) and B2Gold (BTG) change gain for loss.
Over the week, we have 8 picks up against 15 down with Pilot Gold flat. Tanzanian Royalty Expl mitigated its loss, up 8% over the week. Moneta Porcupine lead the downtrend, off 11%.
Broad stock markets were meandering between gains and losses last week. The American main indexes SP500 and Nasdaq composite manage to close the week up slightly since Friday August 1. For gold Wednesday was pivotal as the bounce ended a losing streak for gold. On balance we end the week up 1.15% at $1309.1, despite the sell-off in narrow Globex trading towards the Friday close. Silver continues weakening relative to gold. We close the week at $19.91, down 1.91%.
Gold miners firmed last week, with the HUI up 2.3%, making HUI/Gold gain a little to 0.185. Silver miners shrug off the metal weakness. Our GoldMinerPulse based cap weighed index adds 1.81%. The SIL miners ETF is rallying remarkably relative to the white metal. The update of the GoldMinerPulse page provides more graphs and data. The miners rally however still has a narrow base: despite aggregate gains of the cap weighed indexes, the number of gains at best balances the number of losses among miners. The "equal weight index" geared towards small cap performance is lagging. That doesn't bode well for our contributor driven explorer & junior miner spreadsheet. It now stands at a 26.05% loss, down about 1% since last week.
Once more we have four winners over the long haul, with additionally Miranda Gold and B2Gold flat since inclusion, against 19 losses.
Over the week, 10 picks are up against 11 down with 4 unchanged. Both Aussies, Excelsior Gold and Medusa Mining lead to the downside, adding to their loss. Sandstorm Gold also is in a losing streak, giving back most of its gains by last Friday close. Aurcana leads to the upside with an 11% weekly gain. This doesn't however help a lot, considering the stiff losses it faced last year after mining operations at Shafter were suspended.
Broad stock market indexes resume their recovery last week, despite flares of warfare and violence coming from the Middle-East and continuing tension in the Ukraine., with mutual economic sanctions hampering trade, both in Europe and in Russia.
Precious metals didn't convince: gold only gave back 0.35% since Friday Aug 8, closing at $1304.5 after a volatile session. Silver once more is off worse: the white metal closes at $19.55, down 1.8% over the week, also unable to follow the partial gold recovery after its Friday morning plunge. Whereas platinum is trading in line with gold, only palladium again could make a fist and rally to a higher close. A long term comparison of precious metals has been published earlier last week: Metals not equally precious investments
Miners have been defying gravity: despite precious metals weakening fractionally, miners upheld rather well until Wednesday. The HUI/Gold ratio surpassed 0.19 for the first time since long. It closes at 0.1882, still firmer than last week. Especially silver miners plunged since Wednesday with the metal price continuing to erode. Suspension of the LBME silver fix and its replacement by an alternate reference price calculation will need some time to gain trust. You find updated graphs on the GoldMinerPulse page.
As with broad stock markets, any further progression gets a more narrow base, with several of the small caps going south, recently joined by a majority of silver miners. Not surprisingly the HUI index still is up slightly (1.3%) over the week, while our GMP based silver miners index loses 3.5% and the broad equal weight index eases 0.8%. That doesn't bode well for our contributor driven explorer & junior miner spreadsheet, however the loss stays contained below 0.7%, which brings us to an accumulated loss of 26.55%. Over the long haul we now have 4 picks up against 19 down, with Miranda gold and Mirasol Res. flat since inclusion. Pretium changed loss for gain once more.
Over the week, 8 picks firm, while 13 weaken with 4 more flat. Monument Mining loses 10% over the week, leading the down-side, while Excelsior Gold gains over 7%.
We're quickly approaching the end of August, which means that a seasonally strong period for precious metals should be lying ahead. However, this way it will never work: last week we've seen the S&P set a fresh high, at a sigh from the 2000 level. Both stock markets and bond markets were rallying, with interest rates coming down globally. This is not consistent with economic expansion and credit creation, but stock markets are neglecting that... and so are precious metals. Despite near zero long term rates, precious metals have a hard time. Over the week gold is off 1.85% to 1280.5, while silver eased 0.82% (poor comfort after leveraging down the yellow metal for several weeks in a row). As usual, precious metals made some tiny gains on Friday after the losing streak.
This way it won't work for miners either. After outperforming the metals during their rally, miners now are the weakest sector on stock markets. We haven't had a decent up-day since August 12, with at best gains balancing losses among miners and some occasional tiny gain for the HUI index. On the contrary, both juniors and silver miners really have a hard time. With the HUI index down 3.1% over the week, the HUI/gold ratio is off a little to 0.186. For this and more updated graphs, see the GoldMinerPulse page.
All of this doesn't bode well for our contributor driven explorer & junior miner spreadsheet and indeed we lose 4.5%, in line with our GLDX benchmark. Only 3 picks had a positive return over the week (lead by Monument Mining +8.3%), with 20 down and Wellgreen platinum flat. We are down to three long term gains, with Pretium Res changing gain for loss once again.
Despite most miners losing ground, there are no excessive double digit losses, but also the few gains are rather marginal.
Good write-up, shows promise for development or take-over. Positioned in Chile, more mining friendly.
Disclosure: I do have a small position in XRA, bought @ .67/sh
Last week the S&P rounded 2,000. Broad markets continue their uptrend, despite the turmoil in the Ukraine and Iraq. On Monday, precious metals made fresh summer lows with silver actually down over 2014. We now are off the lows, but precious metals aren't convincing, unable to hold on to morning gains and most often weakening in late hour Globex trading. Gold closes the week at $1287.2 up 0.53% (typically less than most intra-day variations). Silver adds a meager 0.36% to $19.46, still down 0.6% year-to-date.
Miners have seen the sun peeping through the clouds, and are following stock markets up. The HUI gold miners index adds 3.11% over the week to 245.5, making HUI/Gold firm to 0.19. For this and more updated graphs, see the GoldMinerPulse page.
Our contributor driven explorer & junior miner spreadsheet is up 2.66% over the week, in line with both GDXJ and GLDX. Our aggregated loss mitigates to 28%. We have 15 explorers or juniors up over the week, against 6 down and 4 unchanged. Excellon resources, Excelsior gold and Argonaut Gold lead to the upside with double digit gains over the week. Mirasol Res. is off 4.5%, thereby changing gain for loss since inclusion. Pretium Res and Platinum Group again are out off the red. We now have four list components up over the long haul.
General stock markets have been recovering from any minor pull-back over the summer to end ever stronger. As for precious metals, it's once more going from bad to worse. I haven't been upbeat last few weeks. At best metals were holding ground the last week of August. The Tuesday plunge didn't therefore come as a surprise, only its magnitude is a reason for concern. Physical demand has not yet picked up the way it did at any earlier plunge of the gold futures. This only makes the shorts bolder.
As usual, explanations for the precious metals plunge are found easily: The ECB rate-cut strengthens the USD, countering the effect of any QE policy of the ECB. The geo-political tension in the Ukraine may well cool down (?). In Iraq and Syria, ISIS meets more resistance. Even former enemies are joining forces to oppose the major evil. Explanations however fail to predict: whenever the price tendency reverses, other mantra will take the lead. On balance gold is down 1.46% over the 4-day trading week, closing at $1268.4. Silver eases 1.39% to $19.19. Intra-day volatility has been high throughout the week.
A reality check for miners: after outperforming the metals on their way up and ignoring the initial precious metal weakness, we got a major plunge last week, with the HUI off 7.12% to 228. HUI/Gold retreats to 0.179 from 0.19 last week. For this and more updated graphs, see the GoldMinerPulse page.
This can only end in tears for our contributor driven explorer & junior miner spreadsheet. Indeed, we're off 6.86%: only marginally less bad than the HUI index of major gold miners. Only four miners on our list withstood the down draft, with two posting a minor gain (Monument Mining & Almaden Minerals) and two more holding ground (Mirasol and Sabina). The 21 picks going south are headed by Aurcana (-16.4%), but 7 more are down double digits. The aggregate loss now stands at 32.95%. Only Oceanagold still holds on to a tiny gain over the long haul.
In the benchmark section, the triple bear ETN, DUST got out of the red again, with a massive 18.8% gain last week. With GDXJ off 6.7% and GLDX shedding nearly 8%, we don't under-perform... poor comfort.
The S&P general stock index is a less than 2% below its most recent all time high. Bond markets suffer somewhat more as rates rise above the August lows. For precious metals, those tendencies don't seem to matter at all. Their own trajectory continues down with a clear intention for gold to testing the $1180 double bottom. Once more the naughty metals are sticking out their tongue to investors and speculators alike, hoping for any long established seasonal pattern to repeat for once: it seldom has last few years.
If the safe haven demand is waning on account of a stronger economy, you would at least expect the precious metals with a dominantly industrial demand to outperform gold. To a certain extent that holds: palladium has set a recent post 2008 high above $900. Platinum has lagged palladium in it ascent, but it better upheld during the recent selling spree. Silver can't make a fist, with the Gold-to-silver ratio still at 66 on Friday (despite the yellow metal especially weak). Another indicator to call the end of the gold selling wave is the miners no longer leveraging down the metals but engage in a counter trend rally. We're obviously not there yet.
Over the last week, gold slid 3.16% closing at $1228.3 on Friday. Silver is off 3.02%, closing at $18.62. The HUI index sheds almost 4% over the week, closing at 219. HUI/Gold stands at 0.178, down only fractionally since Friday Sep 5. For this and more updated graphs, see the GoldMinerPulse page.
This doesn't bode well for our contributor driven explorer & junior miner spreadsheet. Nevertheless, the weekly loss is contained to only 1.3%, bringing us to an aggregated loss of 33.8%. Little to our credit, the Forex comes to rescue: since many quotes are in CAD and the USD has been strengthening, this has been underpinning the quotes in other currencies. Over the long haul, only Oceanagold holds on to some tiny profit. Last week, we predictably had losses outnumbering gains. Yet with 15 picks down against 8 up (leaving 2 flat over the week), the balance is less negative than might be anticipated. Wellgreen Platinum and Miranda Gold lead to the upside, with double digit gains. Sabina Gold&Silver is the only explorer down double digits (12.5%).
In the benchmark section, GDXJ is down 4.6% and GLDX is off 3.8% over the week. At the opposite end, DUST, the triple bear miners ETN is up almost 14% to close with a long term gain of 23%. As a gold mining investor, you don't enjoy noticing this.
The S&P broad market index holds above 2000, within a sigh of its all time high. In the mean time, precious metals continue to slide, irrespective of whether the economic indicators coming through are good or bad, whether the stock market goes up or down or geopolitical tensions ease or aggravate. Some analysts point at the strengthening greenback. While that may contribute, the argument is slightly off mark: gold also is sliding in euro or pound sterling.
By the Friday NY-Globex close, gold is down (only) 1% over the week, closing at $1216.2, while silver slid 4.4% to close at $17.79 due to a precipitous drop after the LME fix. By now the year-to-date gain of gold melted away to a little significant 1.6%, while silver slid down to a year-to-date loss of 9.1%.
The relentless slide of precious metals during September is challenging the mining sector: previous gains are quickly eroding away as the HUI index drops to 208.5. Since the beginning of the month, HUI/Gold first dropped below its 50 dma and this week the 200 dma was the next support breached. It now stands at 0.1714. In less than a month over 50% of the HUI/Gold gain from its December 2013 trough at 0.157 to its August 2014 peak at 0.190 has been lost. Miner weakness is back in town. For this and more updated graphs, see the GoldMinerPulse page.
This implies another set-back for our contributor driven explorer & junior miner spreadsheet: the weekly loss stands at 4.7%, in line with the 4.8% loss on the HUI index. The aggregated loss now stands at 36.94%. After a major slide on Friday, Oceanagold (our 'last man standing') slid into the red. Over the week, 7 picks mitigated somewhat prior losses while 18 dive deeper into the red.
In the best case, the accumulated loss is lower than 10% (PLG); in the worst case, we have less than 10% left (AUN.V). In any real portfolio, I would have cut the loss, selling before it came to this. But curiosity as to how it will end up with this former high-flyer makes me keep it aboard.
Ultimately the broad stock market rally ran out of steam. The S&P retreated from its all time high and now is back to 1982.8. Not that this makes any difference for precious metals. After another rocky week, the metals end mixed. Gold is almost flat, while silver is down 0.7% over the week. After closing at $17.5 on Thursday, there is a timid gain to end the week with. Main victim is Palladium ($772), which sold off quite rapidly after its recent multi-year high above $900. Platinum is taken down in the slipstream to $1297, with the gold-to-platinum ratio now up to 0.94 once again.
The HUI index barely holds above 200, closing at 201.7 on Friday. This is below the 205, where we closed on the first 2014 trading day. HUI/gold is down to 0.1653, 75% of the gains from the December 2013 bottom to the recent August peak at 0.19 have been lost. You find fresh graphs on the usual GoldMinerPulse page.
With platinum group metals beaten up, the worst can be expected for our contributor driven explorer & junior miner spreadsheet. However the weekly loss stands at 3.63%, in line with the 3.26% loss on the HUI index and less bad than both GDXJ (-4.3%) and GLDX (-4.5%) benchmarks. We now are down to an aggregated loss of 39.24%.
Over the week, 7 picks are up, against 15 down with the three remaining flat. Oceana Gold leads to the upside: correcting up after last week's slide. Asanko Gold, Pilot Gold and (predictably) Platinum metals group (PLG) lead to the downside with a double digit loss.
A stock market correction has been the talk of the town for several months now. Any pull-back has been a suitable opportunity for adding on to positions. The latest correction once more seems "Much ado about nothing": both S&P and Nasdaq comp. end the week less than 1% lower than the Friday Sep 26 close.
For a real correction have a look at precious metals. For a true bear market feeling, get some graphs of precious metal miners. After the Friday slide, gold now is down 2.35% over the week, closing at $1190.7. A first close below $1200 and down 0.5% year-to-date. Silver lost another 4.5% to close at $16.86, down 13.8% year-to-date. True carnage among PGM's, with platinum sliding to $1223, down 3.24% on a single session and also down 4% year-to-date, down to a five year low. The gold-to-platinum ratio is up to 0.97, a level last seen early 2013.
Many miners now are plunging beneath their December 2013 lows. The HUI index is down to 189.8 a loss of 5.91% over the week, of which the 4.47% slide on Friday is a sad culmination. HUI/Gold has given back all 2014 gains, now posting at 0.1594, down from 0.1613 year-to-date and barely above its December 2013 low of 0.1566.
With GDXJ down close to 10%, juniors are off even worse than the gold mining majors. On our contributor driven explorer & junior miner spreadsheet not one single component is countering the trend down. At best two picks are breaking even over the week. With quite a few double digit losses, our list down 7.9% over the week. The aggregate loss now stands at 44.04% since the start. This is the worst situation ever. So far there is no indication of any imminent turn-around. We're left in agony.
Against the background of a world-wide stock market correction, we witnessed the usual volatility on precious metal markets. On Monday Platinum set the tune, with an intraday $35 plunge to below $1190, followed by a $55 rally to close at $1241, up $20 from Friday Oct 3. It would trigger a short-lived recovery for all precious metals. Platinum continued its recovery rally till Wednesday ($1274) to correct down to $1251 by the Friday close. Over the week, gold adds 2.7% to $1223, while silver adds 3.2% to (as still dismal) $17.40.
Miners watched the the precious metal recovery from the side-lines in disbelief. The HUI index managed to sell-off more than its timid previous gain on Tuesday, only to come roaring back on Wednesday. The bear market rally doesn't bail us out however: two more dismal sessions made miners sympathize south, along with the broad stock market. HUI/Gold now set a fresh low, beneath the December 2013 bottom. In six weeks time the ratio plunged from its 2014 high to where we end up now. You find fresh graphs on the GoldMinerPulse page.
On our contributor driven explorer & junior miner spreadsheet, losses outnumber gains 15 to 10. The aggregate weeky loss is contained to 0.8%. Our overweighing platinum miners/explorers no longer is an edge: we're off a little worse than the HUI (-0.14% over the week) or our benchmark ETF's which are holding ground (GLDX) or are up slightly (GDXJ). High volatility isn't good for the directional leveraged ETF's: both NUGT (-1%) and DUST (-7%) are down over the week.
Does anyone have an opinion on Allied Nevada Gold Corp (ANV)? It seems priced perfectly right now (it doesn't look like it can get any lower) and the metals and miners appear perfectly positioned for growth. With equities taking a beating, oil and the dollar seem to have found a bottom as well and QE 4 being talked about again.
Friday's relief rally is what markets needed for investors to digest last week's losses. The weekly loss of the Nasdaq composite was trimmed to 0.42%, while the S&P gave back 1.02%. Mixed results also for precious metals: gold held on a weekly 1.24% gain closing at $1238.2, while silver slid another 1.2% to $17.19. Mixed results also for the PGM's with Platinum holding ground (+$2 over the week to $1251) and Palladium threading water, down over 3.5% to $751. Both metals rallied on Friday, whereas gold and silver ended the day down after a lackluster session.
Miners weren't inspired. The HUI spoilt its week on Friday, plunging 3.46% to 187 and down 1.04% over the week. The HUI/Gold ratio ends the week at 0.151, below the December 2013 bottom, which also sets a fresh 13 year low for this relative valuation. You find fresh graphs on the GoldMinerPulse page.
All of this doesn't bode well for our contributor driven explorer & junior miner spreadsheet. Yet we are up 3.46% over the week (despite a slide on Friday), mitigating the aggregate loss to 42.46%. There are 17 list components up against 7 down, with Mirasol Res flat over the week.
Excellon Resources and Pretium Res are up double digits (again despite the Friday slide); our badly beaten up Platinum explorers IVN and WG also follow to the up-side. Aurcana once more is down 7% over the week. Yet, with an aggregated loss over 93%, any further slide of Aurcana affects our list performance only little.
Allied Nevada came with Q3 results last week, which the market didn't appreciate. They were mining through an intermediary lower grade layer to get to richer ore beneath. Lower output and lower sales prices: not really a blessing. Yet, their silver recovery from the leach has improved with the new equipment. I may take ANV on board the list: after the Friday plunge, this could be an opportunity.