Haystack 2016
Posted: 10 Jan 2016, 21:25
Gold Mining investors shrugging off bearish sentiment ?
2016 started with an ugly retreat on worldwide stock markets, triggered by a plunge in China where trade was halted a couple of times. Gold was further lifted above its recent lows and broke above $1100 on Thursday. We end the week with a mild retreat at $1104.6, up 4.11% for 2016. Miners respond favorably and HUI/Gold firmed to 0.1072. Are mining investors shrugging off bearish sentiment? Perhaps better be cautious: silver seems to follow reluctantly with a 0.72% gain, only briefly breaking above $14 on Thursday. You find updated graphs on the gold miner pulse blog page. A new long article with a longer term perspective has just been published: Gold miner bear market starting its fifth year.
There are perhaps a few good arguments for caution: the bifurcation among precious metals. The PGM's are off worse since the year started: whereas platinum limits its loss to 1.46% over 2016, closing at $877, palladium shed 12.3%, sliding to $491. This is a fresh multi-year low and down from about $800/Oz only a year ago. I still have to witness a durable gold recovery where the three white precious metals aren't, if not taking the lead, at least following in the slipstream.
Among our benchmark ETFs, gains vary between 1.5% for SIL over 4.7% for GDXJ to 6.3% for GDX, while the 9.3% gain for GLDX mainly is a recovery from the slide during the last week of 2015. With a 3.9% gain, our contributor driven explorer & junior miner spreadsheet is somewhat lagging. The Friday loss (1.63%) is eroding prior gains. We now are down 47.01% on average. The good news is 3 picks are up since inclusion: perhaps less surprisingly Osisko Gold Royalties is up 6.47% since including it on Dec 31st and MAG silver keeps up fairly well. Oceana Gold is the third long time winner joining the select group. With a small single digit long term loss, Pretium Res. also made a come back last week. But the overall balance isn't too favorable: there are 8 advances against 10 declines with Wellgreen Platinum steady over the week.
2016 started with an ugly retreat on worldwide stock markets, triggered by a plunge in China where trade was halted a couple of times. Gold was further lifted above its recent lows and broke above $1100 on Thursday. We end the week with a mild retreat at $1104.6, up 4.11% for 2016. Miners respond favorably and HUI/Gold firmed to 0.1072. Are mining investors shrugging off bearish sentiment? Perhaps better be cautious: silver seems to follow reluctantly with a 0.72% gain, only briefly breaking above $14 on Thursday. You find updated graphs on the gold miner pulse blog page. A new long article with a longer term perspective has just been published: Gold miner bear market starting its fifth year.
There are perhaps a few good arguments for caution: the bifurcation among precious metals. The PGM's are off worse since the year started: whereas platinum limits its loss to 1.46% over 2016, closing at $877, palladium shed 12.3%, sliding to $491. This is a fresh multi-year low and down from about $800/Oz only a year ago. I still have to witness a durable gold recovery where the three white precious metals aren't, if not taking the lead, at least following in the slipstream.
Among our benchmark ETFs, gains vary between 1.5% for SIL over 4.7% for GDXJ to 6.3% for GDX, while the 9.3% gain for GLDX mainly is a recovery from the slide during the last week of 2015. With a 3.9% gain, our contributor driven explorer & junior miner spreadsheet is somewhat lagging. The Friday loss (1.63%) is eroding prior gains. We now are down 47.01% on average. The good news is 3 picks are up since inclusion: perhaps less surprisingly Osisko Gold Royalties is up 6.47% since including it on Dec 31st and MAG silver keeps up fairly well. Oceana Gold is the third long time winner joining the select group. With a small single digit long term loss, Pretium Res. also made a come back last week. But the overall balance isn't too favorable: there are 8 advances against 10 declines with Wellgreen Platinum steady over the week.