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PMs look DEAD here .
Nothing seems to be able to spark them .
I know ….I know…Everybody and his dog are bearish…so that is bullish
But really ….this is pathetic
HUI is at 13 year lows and falling
What a dismal sector .
Almost nobody outside our little gold circle gives a rats asp about PM Stocks
Time for a final washout
If this were any other sector the washout would have come and gone already
But its a Religion after all
Come on Goldbugs Capitulate already
Take the medicine !
sheesh
The question I have is who is selling these shares at such low prices? I mean, some of these miners are trading at never-before-seen prices, or prices they haven’t traded at since the 70’s. Maybe that’s an exaggeration, I’m not sure. But I’m pretty sure anyone selling gold miners at this point is doing so at a loss. As for me, I just entered another buy order today for a miner for when it drops another 30% or so.
Capitualtion means even long term holders give up and try to salvage pennies
The miners only tell a small part of the story==plenty of people are buying silver coins from the US Mint and the eurozone
has forbidden coin shops to sell gold and silver coins–only to buy them–so that individuals in the eurozone can’t protect themselves from a decline in the Euro..the physical market for gold and silver around the world is enormous—Russia and China and India are massive buyers of physical gold and silver–the bull market in physical gold and silver is not dead and at some point the disconnect between the metals and the companies that mine them will vanish
even Charlton Heston?
Only if Charlton Heston is smart enough to see the value in owning some physical assets….lolnnnI just read that the premium over spot of physical silver was 188% in 2008 (a time of crisis)—this was before the financial crisis in 2008 one could buy 1 ounce of paper silver for $9.00 an ounce whereas a silver American Eagle was $17 an ounce…so real, honest to God, dyed in the wool goldbugs (like myself)are not selling their physical metals just because the mining stocks have collapsed and are going out of business…that anomaly too shall pass
I read somewhere that gold stock shareholders came to a collective awakening back in the early 2000s that gold stock values weren’t reflecting the increasing value of gold like normal stocks would, where future earnings ought to be the main thing determining their value. Gold could double but the stock values would never come close to that sort of increase. Since then gold stocks have generally sold at a discounted value because they’ve now acquired a reputation for poor shareholder value. I wish I knew where I read it but it was the better part of a year ago.
Tim, Google this article by Jeff Clark (Nov 2011) called “What ‘To The Moon’ Will Look Like’ and you can see how unbelievably high mining stocks can go–the author has examples of mining stocks’ performances from the ’20’s, ’30’s, 70’s, 80’s and ’90’s
and the percentage gains are impressive: Carolin Mines up 1,738.7% in the ’78-’80 period, Copper Lake up 13,025.0% in 78-80 period; Goliath Gold up 7,011.1% in the ’80-’83 period or how about Cartaway up 26,040.0% in the Juniors mid 1990’s bull market…maybe mining stocks aren’t a good “buy and hold” choice but when they’re hot they’re REALLY, REALLY, REALLY HOT…One gold commentator said owning mining shares was like holding a burning match….so one’s timing had better be good
There’s no rush like a gold rush and somewhere I read that at the end of Bull Market the share prices reflect in the ground assets rather than a profitability or EPS number
Carolynsue….Many many have been singing this song for a long long long time
Cartaway was 20 years ago
Many many have been waiting that long and getting absolutely crushed in this sector\
I was on board in the mid 90s…and yes I had 100 baggers
But its hard to sell…they flame out so fast its breathtaking
Easy to say…Well I will just hod on till 10Xs my investment then sell
It doesn’t happen that way I am sorry to tell you
Agreed, FGC. Sure looks like HUI is headed to 100, Plunger’s target, and the PO since the neckline on the HS top was broken to the downside. We will see a bull market in gold shares again but it might
have to hit that 100 or even lower, the old 35 low, before this new bull market begins. That means shares could go a lot lower.
No, you two aren’t going to rain on my parade…I have made a lot of money on the miners and I will again..who cares how much lower they go? I don”t own them right now and probably no one else who frequents this site does either. Plenty of people will make plenty of money as these miners rise out of this bottom…especially with all the trading talent plus Rambus that frequents and shares their thoughts at these two sites now…I’m very optimistic
Good for you Caroline
I am glad to hear you don’t own them
They are best never owned…just rented for a short while
Of course there will be a bottom
But like Rambus has said a big initial bounce then a long arduous bottoming process
Perhaps a double bottom over a year or 2 !
But Sir Fully, The data doesn’t necessarily support that idea of a long arduous bottoming process is in store for us. The HUI had a sharp V bottom the end of 2000 and then took off like a scaled cat for 8 years with higher highs and higher lows– I’m betting that we are going to see something comparable to that ‘bottom, then blast off’ version of a bottoming process…there’s no point in spending time in this sector if one can’t take advantage of the sector’s advantage like really, really rapid, out of the park, increases in share prices from time to time.
That would be great
Hope springs
I am in for that