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Any of you guys looking at the gold mining sector?

HonoluluDudeHonoluluDude Posts: 2,167 ✭
in Precious Metals
The miners (the good ones, anyway) are already dirt cheap, getting insanely cheaper by the day.

It could be a "shooting fish in a barrel" window of opportunity.

Comments

  • 57loaded57loaded Posts: 4,967 ✭✭✭
    Hopefully the handful that know about them and who look at them will help guide you...I am not one but my 2cents is you really really really need to know much much more than just current cost of gold production and current POG.

    RR might enlighten us.
  • HonoluluDudeHonoluluDude Posts: 2,167 ✭
    I've been following this sector for years. I've never seen them being thrown away indiscriminately like they are right now.
    The carnage is amazing.
  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭


    << <i>I've been following this sector for years. I've never seen them being thrown away indiscriminately like they are right now.
    The carnage is amazing. >>



    They got thrown away like this a number of times in the past. Most recently was August-October 2008. Even the large cap miner index fell by >70%. Small caps were in
    the 80-93% hit range. The large and intermediate caps (ie GDX) is "only" down 45% since their 2011 peak. GDXJ (small cap juniors) are down 61%. Plenty of room to
    go if these guys want to duplicate their October 2008 washout. If gold decides to break the $1500/oz barrier the miners could really get thrown away. The hard part is finding a
    good miner. But for now, good or bad, they are all getting thrashed as one. Unless one does a ton of research in this field, they are better off just holding ETF's like GDX, GDXJ,
    SIL, etc. GDXJ is a basket of 70-80 juniors with none weighted more than 4-5%. GDX carries about 35-50 seniors and juniors with the biggest 3 mining companies comprising over
    30% of the index. Much more top weighted than GDXJ. The current bottom on GDX & Co. is dependent on gold and silver, not the miner's fundamentals or project potential.
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • jmski52jmski52 Posts: 22,820 ✭✭✭✭✭
    Is their any good way of determining the absolute bottom in this type of manipulated environment? Just askin'.image

    Of course, I realize that if anyone really knew the answer to that question, they probably wouldn't be posting much on this forum.image
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭


    << <i>Is their any good way of determining the absolute bottom in this type of manipulated environment? Just askin'.image

    Of course, I realize that if anyone really knew the answer to that question, they probably wouldn't be posting much on this forum.image >>




    I believe we just saw it at 10 am this morning. Volume ratios of GDX/SPY and GDXJ/SPY are so far today at all time highs....by far. Incredible volume ratio there which normally
    occurs at final capitulations. Did more loading up this morning on some of my favorite juniors. Next few weeks still offer some resistance to miners and PMs so it won't be easy.
    Gold to Silver ratio looks to have finally made the turn on this last 8 week cycle. The HUI to Gold ratio fell below the crazy low set back during the Oct 2008 washout. It then
    quickly recovered. All those signs tell me that was a good place to bottom. No guarantee that it was the absolute bottom but it had all the right signs that I look for. The volume
    ratios should retreat a bit by the close. It's been a rough 5 months for the miners. Compared to the price of gold, today was October 24th 2008 for the miners.
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • HonoluluDudeHonoluluDude Posts: 2,167 ✭
    Nice reversals in some of the miners I follow, like Pretium.

    Let's see if this rally sticks, and forms some kind of bottom.
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