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Wednesday, April 23rd, 2014 - The Gold Economy - Bringing you trusted gold news and gold investing information since 2006

Archive for the 'Gold Stocks' Category

Gold & Silver Stocks Likely to Bottom Any Day

Gold and Silver equities have led the markets lower and have underperformed the metals significantly this year. For the past month or so Gold has firmed and Bonds have moved higher as most asset classes have declined. Unfortunately mining equities have been among the worst performers. However, our work leads us to believe that an important bottom should be in place very soon.

From top to bottom we plot GDXJ (junior golds), SIL (silver stocks), and GDX (large cap golds). While each has broken down in recent days, each is only 5-6% away from a confluence of very strong… Continue reading

Catalyst Needed: Gold Stocks are Underowned and Oversold

 

While Gold is only 2% from all time highs, the gold stocks have struggled and underperformed badly. This is reminiscent of 2008, although we don’t think a similar result is coming. The fact is as QE 2 ends and the failed recovery peaks, money is moving out of risk assets and into Bonds. Gold is holding up very well but the gold stocks are struggling and in need of a catalyst.

Let’s take a look at GDX (large caps) and GDXJ (juniors). In the following chart we show

South African Stock Exchange Still Flat

The South African JSE ended flat on Monday, with gold stocks proving the main drag on the market – falling despite a strong bullion price.

Andrew Tood, an equity derivatives trader at Imara SP Reid, said that the stronger rand also helped to keep a lid on gains in resources. The rand was at R6.73 to the dollar, compared to R6.72 at close of Friday.

Gold was at $1,551.89 a troy ounce, a move from $1,537.66 an ounce at the previous close of the JSE. Platinum was at $1,825.50 an ounce, from $1,813.50.

The JSE all-share index

Gold and Silver Shares Close to Retest of 2010 Breakout

At the start of the year we wrote about what we could expect from the gold stocks and juniors over the first half of the year. All of these markets experienced significant multi-year breakouts in late 2010. This year called for a retest of those breakouts before the next advance would begin. We believed that these markets would spend much of 2011 retesting the breakouts and that markets would later be in position for an unabated advance into 2012 and beyond. We wanted to provide an update on.

Gold Stocks Correction – Downside Targets

The gold stocks are in a correction which could turn out to be the largest and deepest since the crash of 2008. Now is not the time to panic but to evaluate where the gold stocks may go and where buying will come in to support the market. We utilize moving averages, Fibonacci retirements, Bollinger bands and price action to get a good idea of where the market may bottom. Additionally, we always consult sentiment polls, fund flows and options activity.

Starting with the large caps (GDX) here is what we see.

The lower 200-day Bollinger band

Bayin Nonferrous Metal Group to Acquire Gold One International

Pending an announcement of a massive change of control deal by Australian and African Gold One International, experts say the company could be valued at more than AUS$420 million or R3 billion (US$450 million).

The company has requested a trading halt on the South African JSE and the Australian Stock Exchange (ASX) on Friday, pending the announcement of the deal, which is expected on Monday next week.

The announcement is expected to outline an offer for Gold One International by a consortium of Chinese investors, led by Baiyin Nonferrous Metal Group.

Chinese investors has already acquired a… Continue reading




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