Gold Mining Stocks

[nox]

Bought into SLR @ 1.07 today and TRY @ 1.9 yesterday. Gold will inevitably continue to rally imo, the dip was just a combination of classic fear mongering and Syria being their wretched selves. Holding for the long term.

 

[CanOz]

One for the gold bugs....

Jewelry Demand May Revive Gold, Mining Stocks: Chart of the Day
2013-05-01 04:00:01.1 GMT

By David Wilson
May 1 (Bloomberg) -- Growing demand for gold necklaces,
watches and other jewelry may bolster the price of the precious
metal and the shares of mining companies, according to Brian Yu,
a Citigroup Inc. analyst.
As the CHART OF THE DAY shows, smaller year-to-year gains
in gold prices since 2001 have usually coincided with increases
in jewelry purchases, and vice versa. The comparison is based on
quarterly figures compiled by New York’s Comex and GFMS Ltd., a
precious-metals research unit of Thomson Reuters Corp.
“We would expect a demand response to weaker pricing,” Yu
wrote two days ago in a report with a similar chart. Gold fell
in April by 7.7 percent, its sixth loss in seven months. During
the month, the metal suffered its biggest two-day decline since
1980 by tumbling 13 percent.
Gold prices and jewelry demand showed a correlation of
negative 0.57 for the past three decades, according to the San
Francisco-based analyst. The correlation could have ranged from
negative 1, which would mean they went in opposite directions,
and 1, which would show they always moved in lockstep.
The precious metal fell 12 percent during the first four
months of this year. Mining stocks did far worse, as the NYSE
Arca Gold Miners Index tumbled 35 percent. Shares of Newmont
Mining Corp., the largest U.S. producer, dropped 4.6 percent
yesterday on disappointing first-quarter profit and revenue.
Yu cut earnings and share-price estimates on Newmont the
day before the results were released. He’s neutral on the stock
as well as Goldcorp Inc., the world’s second-largest gold miner
by market value. Barrick Gold Corp. is his favorite gold stock,
and he recommends buying Kinross Gold Corp. as well.

For Related News and Information:
Table of GFMS demand statistics: ALLX GFMS <GO>
Precious-metals prices and rates: MTL <GO>
Metal-related top stories: TOP CMD <GO>
Charts, graphs home page: CHART <GO>

--Editors: Michael P. Regan, Jeff Sutherland

To contact the reporter on this story:
David Wilson in New York at +1-212-617-2248 or
dwilson@bloomberg.net

To contact the editor responsible for this story:
Chris Nagi at +1-212-617-2179 or
chrisnagi@bloomberg.net

 

[noirua]

Shareholders in gold miners are revolting – it’s time to buy - MoneyWeek
http://www.moneyweek.com/investment-advice/share-tips/money-morning-buy-gold-mining-stocks-63900

 

[mr. jeff]

There is no compelling evidence to suggest that it is the correct time to make an entry.
Of course that doesn't mean you should go one way or another...

CAUTION!

Have a read of this thread over the last few months if you want to see what I mean - it has been a "good time to buy" in this falling market for a while apparently, but the hammering that has been dished out has been partly fair due to reversals in gold price. Although small miners have been hammered more than other sectors, that does not suggest that there should be a reversal for that reason either.

So there are the 2 main factors you would be hoping to change majorly over the short term in making an entry. At this stage they are not looking like changing significantly.
Perhaps there is something over the horizon, but that is not the best way to treat money that is hard to get and harder to grow.

 

[Gringotts Bank]

OGC making headway. SBM. Might be time to take a look again, also at resources generally. But it feels like selectivity will be extremely important.

 

[Bushman]

OGC making headway. SBM. Might be time to take a look again, also at resources generally. But it feels like selectivity will be extremely important.

Lol, I took a gold trade just after the first POG fall too U$1320/oz - SLR, OGC, PRU and SAR. My thinking at the time was that it was a concerted attack on paper gold, with resultant flow on effect gold stocks, so it should be money for jam. Bought all four at below book.

But I was way too early in catching this falling knife. SLR, in particular, has been belted around.

The overnight jobless claim numbers means that the USD POG should benefit as high US unemployment means QE remains longer.

The falling AUD vs the USD should also give Aussie producers a kicker.

The final penny to drop will be the miners finally having some leverage over employees and suppliers re rampant cost inflation.

So thinks are starting to play out well for Aussie gold miners.

 

[Bintang]

The falling AUD vs the USD should also give Aussie producers a kicker

In AUD the current old price is only 2.5% below its price in April just before the big take down.
Meanwhile Gold Mining shares are still down much more than that. For example NCM is still 26% below its April price just before the gold price plunge.
So its looking more and more like the Gold Miners are way oversold.

 

[odds-on]

I'm waiting patiently as i have been for 2 years since selling out of my gold stocks (was left holding 1 very cheap parcel) ~ TRY and NCM are the only 2 miners worth owning in my opinion and im not budging till i see $1.40 and $14.99

When knife catching you have to draw a line in the sand somewhere.

Hi SC,

Did you catch the NCM knife? Currently trading at $14.35...

Cheers

 

[So_Cynical]

Hi SC,

Did you catch the NCM knife? Currently trading at $14.35...

Cheers

I've been on holidays...NCM now #1 on my buy list, but of course i don't have any spare cash, spent all my money on Filipino real estate.

 

[stockGURU]

The gold price has been hammered hard in 2013, and so have gold miners. The big question is, which companies can weather the storm if the price of gold declines further, and which ones may find themselves in trouble?

I like Troy Resources (TRY) because of their low cost of production and their impending takeover of Azimuth Resources (AZH). Azimuth has a lot of prospective tenements in Guyana as well as 1.65Moz in the ground at its flagship West Omai project, with more drilling underway.

I also think Newcrest Mining (NCM) has finally moved into oversold territory if you are looking long term, just on the basis of it's reserves.

What companies have high production costs and may run into trouble should the price of gold decline further?

 

[sreeve]

A few charts on how the ASX gold stocks have been performing since the start of 2013.

A base 100 chart of the gold stocks in the ASX200:



and in percentage terms:


a closer look at some:

 

[tinhat]

Has anyone been buying gold miners? I haven't been doing any buying or selling for a few weeks now. I was short until Monday because I've been too caught up in other things. I sat down yesterday and wondered what to buy and MML popped up. I bought some at 2.19. The bloody stock went up 7% while I was thinking about it. Although a close above 2.40 probably would be a better signal to buy this stock looks like it is on a recovery. Just how much it recovers depends on what progress management make with the mine expansion. Management have consistently missed production targets over the past couple of years.

Anyone else buying gold miners? Which ones?

 

[burglar]

... Anyone else buying gold miners? Which ones?

I think it is all about the dollar.

 

[tinhat]

I think it is also about gold price turn around and value. The AUD follows the gold price.

Bought some SLR yesterday.

So, no one buying gold mining stocks? Interesting.

 

[Gundini]

I think it is also about gold price turn around and value. The AUD follows the gold price.

Bought some SLR yesterday.

So, no one buying gold mining stocks? Interesting.

I have been buying Gold and Silver mining stocks tinhat but started some months ago, and got cut with a few falling knives on the way down. 75% of my portfolio would be in this sector if you include physical bullion holdings.

I started purchasing around the $1400 POG AUD mark, so there was a time when I was suffering quite a bit of pain, and questioning my early entries, but a couple of averaging downs, and a few months later, things are looking better.

Would like to think that the bottom for POG is in, but as we all know September/October can be volatile months for any markets, and a test of the previous recent lows would not surprise.

Either way, I am an investor with a medium timeframe, and looking for some large ROI's in the coming years.

 

[mr. jeff]

I think it is also about gold price turn around and value. The AUD follows the gold price.

Bought some SLR yesterday.

So, no one buying gold mining stocks? Interesting.

Last 2 weeks everyone was a buyer all of a sudden
The move is strong and has come off recent lows so may carry for a while.

PRU / EVR / PIR are what I bought.

PRU showing a nice move, EVR has to break 90c before I will consider getting excited.

Others to look at: RIM, IDC, SAR, BDR.

 

[tinhat]

Last 2 weeks everyone was a buyer all of a sudden
The move is strong and has come off recent lows so may carry for a while.

PRU / EVR / PIR are what I bought.

PRU showing a nice move, EVR has to break 90c before I will consider getting excited.

Others to look at: RIM, IDC, SAR, BDR.

Thanks Mr Jeff. I've only gone long in the past three trading days as I was short in the market for a while there and have been too distracted by life to get back in until now so am making entries with stop-losses now as this week is probably the only week I'll have for a while to keep a close eye on things. Thanks for the watch list.

 

[Gringotts Bank]

Gold stocks still the most likely to move going forward, imo. I think they have another leg or two to go, but will happen more slowly this time.

 

[Gringotts Bank]

Gold stocks still the most likely to move going forward, imo. I think they have another leg or two to go, but will happen more slowly this time.

More slowly eh? NCM, KCN

 

[mthc4F]

Is now the good timing to buy Gold Mining stocks? How do you think of Gold price trends? I feel as a result of Gold price fall, gold stocks have been bearish for quite long, there is the remarkable bottom pattern of them, but I am still in worry of fall of Gold not end yet.