Category: Gold and Silver Stocks 2019
The analysis published under this category are as follows.
Friday, May 17, 2019
GDX Gold Mining Stocks Fundamentals Update / Commodities / Gold and Silver Stocks 2019
By: Zeal_LLC
The major gold miners’ stocks are drifting sideways with gold, their early-year momentum sapped by the recent stock-market euphoria. But they are more important than ever for prudently diversifying portfolios, a rare sector that surges when stock markets weaken. Their just-reported Q1’19 results reveal how gold miners are faring as a sector, and their current fundamentals are way better than bearish psychology implies.
The wild market action in Q4’18 again emphasized why investors shouldn’t overlook gold stocks. Every portfolio needs a 10% allocation in gold and its miners’ stocks. As the flagship S&P 500 broad-market stock index plunged 19.8% largely in that quarter to nearly enter a bear market, the leading gold-stock ETF rallied 11.4% higher in that span. That was a warning shot across the bow that these markets are changing.
Four times a year publicly-traded companies release treasure troves of valuable information in the form of quarterly reports. Required by the US Securities and Exchange Commission, these 10-Qs and 10-Ks contain the best fundamental data available to traders. They dispel all the sentiment distortions inevitably surrounding prevailing stock-price levels, revealing corporations’ underlying hard fundamental realities.
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Thursday, May 09, 2019
Gold Miners’ Strength – What If It Isn’t Just a Bluff? / Commodities / Gold and Silver Stocks 2019
By: P_Radomski_CFA
The stock market took a dive, and gold with silver barely moved higher. Miners had little reason to rally, especially that they have been underperforming gold for many days now. And yet, gold stocks and silver stocks moved visibly higher. What if it isn’t just a bluff? What if it’s the first sign that the near-term bottom is already in?
Well, if this is the case, then the upside for the miners is very limited.
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Tuesday, May 07, 2019
Waiting for Double Bottom Support in Gold Stocks / Commodities / Gold and Silver Stocks 2019
By: Jordan_Roy_Byrne
Several weeks ago we wrote about the downside risk in the gold stocks.
After the various gold stock indices formed distribution-type tops, the subsequent selling has been swift. Miners have plunged through moving averages and short-term breadth indicators quickly reached oversold extremes.
While the gold stocks are oversold, it could be a little while before we can expect a sustained rebound.
We plot GDX below along with the percentage of HUI stocks that closed above the 50-day moving average and 200-day moving average. (The HUI is essentially GDX sans royalty companies).
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Monday, May 06, 2019
Gold Stocks Big Picture / Commodities / Gold and Silver Stocks 2019
By: Rambus_Chartology
I was going through some old long term charts I haven’t posted in many years to see if there was anything of interest to post tonight. With long term charts things don’t change very fast and the big picture can stay viable for years. I have literally hundreds of charts for the different PM stock indexes that I’ve built through the years that are tucked away in different chart lists that I don’t check very often. It’s always interesting to go through some of those old chart lists, especially with the longer term charts, to see what I was thinking years ago and how relative that big picture looks today.
This first chart is a 12 year weekly chart for the XAU which begins with the 2007 small H&S top that led to the crash in 2008. When I first began to post that potential H&S top nobody and I mean nobody wanted to hear about it. The PM complex had been in a raging bull market up to that time so how could there be a H&S top reversal pattern forming. That 2007 H&S top produced the biggest and most vertical decline in the history of the XAU which caught most PM investors off guard. Luckily for those investors that held on during that massive decline, which would have been near impossible, were treated to a reverse symmetry rally back up over the same area on the way down. That 2008 crash low rally produced marginally new highs which turned out to be a massive H&S top which ended the bull market.
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Tuesday, April 16, 2019
Downside Risk in Gold & Gold Stocks / Commodities / Gold and Silver Stocks 2019
By: Jordan_Roy_Byrne
The big picture fundamentals for precious metals have been trending more bullish in recent months as expectations for the Federal Reserve went from a few rate hikes in 2019 to an expectation of a rate cut within the next 12 months. That is aligned with the peak in the 2-year yield and growing concerns over slowing growth globally.
However, that doesn’t preclude a temporary improvement in the economy and markets. China is stimulating again. Global equities have recovered and the S&P 500 is on the cusp of a new high.
All of this means a Fed rate cut in the next 12 months is less likely. Not unlikely but less likely.
Precious Metals have been trading on Fed rate expectations for a while. Higher highs in equities and some stabilization in the economy will chip away at expectations for a rate cut and as a result, some bearish price action is showing up in the precious metals sector.
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Saturday, April 13, 2019
Gold Stocks Bull Market Breakout Potential / Commodities / Gold and Silver Stocks 2019
By: Zeal_LLC
Gold has faded from interest in the past couple months, overshadowed by the monster stock-market rally. But gold has been consolidating high, quietly basing before its next challenge to major $1350 bull-market resistance. A decisive breakout above will really catch investors’ attention, greatly improving sentiment and driving major capital inflows. With gold-futures speculators not very long yet, plenty of buying power exists.
Last August gold was pummeled to a 19.3-month low near $1174 by extreme all-time-record short selling in gold futures. The speculators trading these derivatives command a wildly-disproportional influence on short-term gold price action, especially when investors aren’t buying. Gold-futures trading bullies gold’s price around considerably to majorly, which can really distort psychology surrounding the gold market.
The main reason is the incredible leverage inherent in gold futures. This week the maintenance margin required to trade a single 100-troy-ounce gold-futures contract is just $3400. That’s the minimum cash traders have to keep in their accounts. Yet at the recent $1300 gold price, each contract controls gold worth $130,000. So gold-futures speculators are legally allowed to run extreme leverage up to 38.2x!
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Monday, April 08, 2019
The Biggest Gold Story Of 2019 / Commodities / Gold and Silver Stocks 2019
By: OilPrice_Com
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Sunday, April 07, 2019
Goldcorp: 'Anything but my Payment' / Commodities / Gold and Silver Stocks 2019
By: The_Gold_Report
Money manager Adrian Day looks at recent results from several royalty companies in his portfolio, as well as recent developments in the ongoing Goldcorp saga, and provides updates on a couple of favorite exploration companies.Goldcorp Inc. (G:TSX; GG:NYSE, US$11.52) looks set to be acquired by Newmont, but not without continuing controversy, particularly over chairman Ian Telfer's egregious "retirement allowance" payment, almost tripled after the acquisition announcement. After my comments last bulletin, I was invited onto BNN/Bloomberg to discuss the merger. See TV interview here. The response was overwhelming, and positive.
Saturday, April 06, 2019
Gold Stocks Still Marching / Commodities / Gold and Silver Stocks 2019
By: Zeal_LLC
The gold miners’ stocks are still marching, grinding higher on balance in a solid upleg. While interest in this sector has faded since late February, it is nicely set up for a strong rally. After consolidating high and establishing a sturdy base, the gold miners are likely to soon report greatly-improved first-quarter results. Couple that with gold itself powering higher, and the slumbering gold stocks should surge substantially.
The gold stocks are mired in something of a psychological limbo these days. They aren’t exactly out of favor, but there’s little enthusiasm for this sector. Investors and speculators have largely lost interest for technical, sentimental, and fundamental reasons. It’s been 6 weeks since this gold-stock upleg surged to material new highs. The major gold miners have been mostly grinding sideways since, consolidating and basing.
Contributing heavily to traders’ apathy is gold’s own price action in that recent span. Gold overwhelmingly drives gold-mining profits, making these stocks leveraged plays on gold. Gold’s own latest upleg high of $1341 came back in mid-February right before gold stocks topped. Over the next 12 trading days gold fell 4.1% to $1285 during its usual pre-spring-rally-pullback period. Slumps invariably sap traders’ enthusiasm.
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Wednesday, April 03, 2019
GDX, GDXJ Gold Fundamentals Continue to Improve / Commodities / Gold and Silver Stocks 2019
By: Jordan_Roy_Byrne
Stop me if you’ve heard this before. Precious Metals disappointed again.
The miners were leading the metals but the metals broke down from bear flag patterns and that took the miners lower, suggesting an interim top is in place.
The technicals suggest weakness could be ahead for the sector but the fundamentals are finally turning bullish.
Before we get to fundamentals, let’s look at the technicals. The weekly candle chart of GDX and GDXJ is below.
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Friday, March 29, 2019
Silver Mining Stocks Fundamentals / Commodities / Gold and Silver Stocks 2019
By: Zeal_LLC
The major silver miners have rallied higher on balance in recent months, enjoying a young upleg. That’s a welcome change after they suffered a miserable 2018. Times are tough for silver miners, since silver’s prices have languished near extreme lows relative to gold. That has forced many traditional silver miners to increasingly diversify into gold. The major silver miners’ recently-released Q4’18 results illuminate their struggles.
Four times a year publicly-traded companies release treasure troves of valuable information in the form of quarterly reports. Required by the US Securities and Exchange Commission, these 10-Qs and 10-Ks contain the best fundamental data available to traders. They dispel all the sentiment distortions inevitably surrounding prevailing stock-price levels, revealing corporations’ underlying hard fundamental realities.
While 10-Qs with filing deadlines of 40 days after quarter-ends are required for normal quarters, 10-K annual reports are instead mandated after quarters ending fiscal years. Most silver miners logically run their accounting on calendar years, so they issue 10-Ks after Q4s. Since these annual reports are larger and must be audited by independent CPAs, their filing deadlines are extended to 60 days after quarter-ends.
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Monday, March 25, 2019
Will the Historic Imbalance in Gold Stocks to Gold Price Resolve ? / Commodities / Gold and Silver Stocks 2019
By: Rambus_Chartology
There is a ratio chart, $Gold:$XAU, we haven’t looked at in quite awhile that has helped us in the past to locate some important turning points for the PM stocks. I’m not going to get into all the details tonight but this ratio chart shows you just how undervalued the $XAU or precious metals stocks in general are to gold itself. From the mid 1980’s to the 2008 GFC crash the horizontal blue line was a good place to buy your gold and silver stocks and when the ratio fell to the red line it was a good place to sell those stocks.
Everything changed dramatically between gold and the gold stocks during that 2008 crash period. The green circle on the XAU shows where the failure occurred. Instead of the ratio dropping down to the red line like it had always done before the ratio broke out above the blue horizontal line in a way it had never done previously. At the time I labeled that initial high as the highest the ratio had ever been in history thinking the price action would decline back into the old trading range between the blue and red lines. As you can see that wasn’t the case at all. Instead of getting back to normal the ratio began to go parabolic to the upside and finally topped out in January of 2016 as shown by the small double top, yellow shaded area. That also marked the bottom for the XAU.
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Saturday, March 23, 2019
Gold Mid-Tier GDXJ Stocks Fundamentals / Commodities / Gold and Silver Stocks 2019
By: Zeal_LLC
The mid-tier gold miners’ stocks have been rallying on balance in recent months, carving a solid young upleg. They’ve mostly finished reporting their latest fourth-quarter results, revealing how they are faring fundamentally. Their operating and financial performance is very important for investors, as the mid-tier realm is where most of the gold-stock sector’s gains accrue. They fared really well in a challenging quarter.
Four times a year publicly-traded companies release treasure troves of valuable information in the form of quarterly reports. Required by the US Securities and Exchange Commission, these 10-Qs and 10-Ks contain the best fundamental data available to traders. They dispel all the sentiment distortions inevitably surrounding prevailing stock-price levels, revealing corporations’ underlying hard fundamental realities.
While 10-Qs with filing deadlines of 40 days after quarter-ends are required for normal quarters, 10-K annual reports are instead mandated after quarters ending fiscal years. Most gold miners logically run their accounting on calendar years, so they issue 10-Ks after Q4s. Since these annual reports are larger and must be audited by independent CPAs, their filing deadlines are extended to 60 days after quarter-ends.
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Wednesday, March 20, 2019
Gold Stocks Outperform Gold but Not Stocks / Commodities / Gold and Silver Stocks 2019
By: Jordan_Roy_Byrne
In recent weeks we noted the bullish outlook for the stock market.
Friday the S&P 500 as well as ACWX (global equity ETF ex US stocks) closed above resistance and made higher highs.
Not surprisingly, as US and global equities have avoided a bear market (for the time being), precious metals have weakened. It’s not a surprise that as Gold failed to breakout both the S&P 500 and global equities (ACWX) held their 200-day moving averages and then made a higher high.
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Monday, March 18, 2019
Hurdles for Gold Stocks / Commodities / Gold and Silver Stocks 2019
By: Gary_Tanashian
One problem for the gold stock sector was highlighted here and here evidently a little too obnoxiously for the liking of some bugs. The problem was the aggressive bullhorn sounds emanating from every orifice of the gold community the minute the charts broke upward into an obviously bullish technical state.
But while the HUI/Gold ratio has been a distinctly positive technical indicator and many bullish gold stock charts populated the sector, we had noted back in December that gold’s hysterically overbought performance vs. broad stocks was due to pull back, hopefully in an orderly consolidation. Well, the relief has dragged on and the ratio of gold to SPX and its global fellows has been consolidating alright.
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Sunday, March 17, 2019
Gold Mining Stocks Fundamentals / Commodities / Gold and Silver Stocks 2019
By: Zeal_LLC
The major gold miners are grinding higher in a solid upleg, fueling growing interest in this small contrarian sector. They’ve mostly finished reporting their fourth-quarter results, revealing how they are really faring fundamentally. Collectively the world’s biggest gold miners continue to face serious challenges, which often stem from declining production. That makes stock picking more important than ever for investment success.
Four times a year publicly-traded companies release treasure troves of valuable information in the form of quarterly reports. Required by the US Securities and Exchange Commission, these 10-Qs and 10-Ks contain the best fundamental data available to traders. They dispel all the sentiment distortions inevitably surrounding prevailing stock-price levels, revealing corporations’ underlying hard fundamental realities.
While 10-Qs with filing deadlines of 40 days after quarter-ends are required for normal quarters, 10-K annual reports are instead mandated after quarters ending fiscal years. Most gold miners logically run their accounting on calendar years, so they issue 10-Ks after Q4s. Since these annual reports are larger and must be audited by independent CPAs, their filing deadlines are extended to 60 days after quarter-ends.
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Saturday, March 02, 2019
Gold Stocks Spring Rally / Commodities / Gold and Silver Stocks 2019
By: Zeal_LLC
The gold miners’ stocks have been climbing higher on balance, enjoying a solid upleg that is gathering steam. That’s fueling improving sentiment, driving more interest in this small contrarian sector. This gold-stock upleg is likely to grow in coming months, partially because of very-favorable spring seasonals. The gold stocks’ second-strongest seasonal rally of the year typically unfolds between mid-March to early June.
Seasonality is the tendency for prices to exhibit recurring patterns at certain times during the calendar year. While seasonality doesn’t drive price action, it quantifies annually-repeating behavior driven by sentiment, technicals, and fundamentals. We humans are creatures of habit and herd, which naturally colors our trading decisions. The calendar year’s passage affects the timing and intensity of buying and selling.
Gold stocks exhibit strong seasonality because their price action mirrors that of their dominant primary driver, gold. Gold’s seasonality generally isn’t driven by supply fluctuations like grown commodities experience, as its mined supply remains fairly steady year-round. Instead gold’s major seasonality is demand-driven, with global investment demand varying dramatically depending on the time in the calendar year.
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Wednesday, February 20, 2019
HUI Update…A Treat for Long Suffering Gold Traders / Commodities / Gold and Silver Stocks 2019
By: Rambus_Chartology
Below is the combo chart which has the HUI on top, the UUP in the middle and GLD on the bottom. Everything looks fine.
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Tuesday, February 19, 2019
Gold Stocks are Following This Historical Template / Commodities / Gold and Silver Stocks 2019
By: Jordan_Roy_Byrne
Roughly one year ago and prior to that we observed that the gold stocks could be following the recovery template from what we deemed a “mega bear market.”
We define that as a bear market that is over two and a half years in time and over 80% in price. It cuts both ways.
The gold stocks from 2011 to January 2016 had declined more than 80% and for more than four years. It was a textbook mega bear market.
The sharp recovery in 2016 quickly faded and left us wondering if there was a historical comparison.
Turns out, there are three strong and relevant comparisons.
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Friday, February 15, 2019
Gold Stocks Mega Mergers Are Bad for Shareholders / Commodities / Gold and Silver Stocks 2019
By: Zeal_LLC
The world’s two biggest gold miners both announced mega-mergers over the past 5 months or so. These huge deals briefly garnered some interest in the usually-forgotten gold-stock sector, and fleeting praise from Wall Street analysts. But gold-stock mega-mergers are bad news for gold-miner shareholders on all sides. They reveal the serious struggles of major gold miners, and really retard future upside in their stocks.
For decades the largest gold miners in the world have been Newmont Mining (NEM) and Barrick Gold (ABX). These behemoths have long dwarfed all their peers in operational scope. While the gold miners are in the process of reporting Q4’18 results now, their latest complete set remains Q3’18’s. As after every quarterly earnings season, I analyzed them in depth for the major gold miners of GDX back in mid-November.
The GDX VanEck Vectors Gold Miners ETF is the world’s leading and dominant gold-stock investment vehicle. In Q3 alone NEM and ABX mined a staggering 1286k and 1149k ounces of gold! To put this in perspective, the average of the next 8 largest gold miners rounding out the top 10 was just 508k ounces. Newmont and Barrick have long been in a league of their own, with commensurate market capitalizations.
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