Gold miners (GDX -3.2%) take another beating as gold continues to lose its allure amid...


Gold miners (GDX -3.2%) take another beating as gold continues to lose its allure amid disclosures of reduced bets by hedge funds, a World Gold Council report showing gold demand at a three-year low, and a surging dollar. For the miners, it's an ugly world of lower production, higher costs and falling prices. At least nine miners hit 52-week lows: NEM -3%, GG -2.7%, AUY -4.8%, HMY -6.3%, AU -2.5%, BVN -1.1%, ANV -7.4%, NG -2.7%, GSS -5.8%.

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Comments (18)
  • TwistTie
    , contributor
    Comments (2429) | Send Message
     
    I can't believe that gold demand is at a three-year low.

     

    I'm not saying it's not true, I just can't believe it.

     

    They should check their spreadsheet formulas.

     

    ABX -3.3%, if anybody cares.
    17 May 2013, 03:36 PM Reply Like
  • mikeginn
    , contributor
    Comments (347) | Send Message
     
    Excluding ETF net sales, gold demand is up year over year -- and when you include ETFs, gold demand is at a three year-low. Pick which emphasis goes along with the rest of the story I guess.
    19 May 2013, 07:46 PM Reply Like
  • osanbat9
    , contributor
    Comments (13) | Send Message
     
    While foreign demand and buying and pricing is the opposite? What is up?
    17 May 2013, 03:45 PM Reply Like
  • ZBNW
    , contributor
    Comments (138) | Send Message
     
    That was likely somewhat the case as the early birds jumped at what looked like opportunity. Then those with a lot to lose used that info to say 'Well they are buying it up in heaps everywhere else, gold is just fine' which got the price moving upward again, but now reality strikes, that demand seems small relative to what the big boys buy and sell, and if they can't make money holding an asset, well we all know that one. I would suggest in general that gold is perhaps less valuable in the future than even now, but that probably wont be the case for it's price.. maybe it has more real undiscovered uses?
    18 May 2013, 02:22 PM Reply Like
  • phdinsuntanning
    , contributor
    Comments (1349) | Send Message
     
    is 1971 but without the regulation...
    is 1983 but with no treasuries...
    is a present from the Masters of the Universe,
    is the last chance before the 1000 years
    Kingdom of BIS, IMF and WB global government.
    I will take this train... because after this one
    what is coming behind is Miss Stanflation,
    the daughter of Mr Recession with Mrs Inflaton
    and inflation is taxation without legislation !
    17 May 2013, 04:42 PM Reply Like
  • Herr Hansa
    , contributor
    Comments (3130) | Send Message
     
    Unloading of so-called "safe haven" investments towards more risk and more yield. There is also a growing sentiment of the possibility of deflation, especially when one looks into statements from several central bankers. However, with a currency war in progress, I still see these gold miners and gold ETFs as good long term choices. Probably not much return this year, beyond dividends, but heading into 2014/2015 moves this year can position one strategically.
    17 May 2013, 05:06 PM Reply Like
  • Kyle Spencer
    , contributor
    Comments (1240) | Send Message
     
    What's up is that Gold ETFs are what's been driving the price, and the Eastern buyers are beginning to look like a lagging indicator, instead of a leading one.
    17 May 2013, 05:20 PM Reply Like
  • marketwatcher23
    , contributor
    Comments (2249) | Send Message
     
    What is going to come down the road is going to be amazing to see. Money is going to fly all over the planet into perceived safe havens. A lot of it is going to run to the wrong places. Good luck everyone.
    17 May 2013, 10:28 PM Reply Like
  • Ananthan Thangavel
    , contributor
    Comments (835) | Send Message
     
    Yes that is correct. Gold ETF holdings are plummeting on a daily basis. The writing is on the wall, gold is done.
    17 May 2013, 10:29 PM Reply Like
  • marketwatcher23
    , contributor
    Comments (2249) | Send Message
     
    Ananthan get a clue already.

     

    When you get hungry do you go out and buy a picture of food?

     

    I am guessing you do.
    17 May 2013, 10:38 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (13494) | Send Message
     
    The Federal Reserve can create deflation just as easily as they did with the great depression if their investment in QE starts to go stale from higher interest rates. Given QE they can make a depression much worse than the great depression now that they truly do control money supply with no restraints at all. We are all foolish to let Congress give away our rights to control money supply. Without a fair method of creating and distributing money supply (or at least democratic) we can not call this monetary system capitalism at all.
    17 May 2013, 10:26 PM Reply Like
  • marketwatcher23
    , contributor
    Comments (2249) | Send Message
     
    Moon this ends in a currency crisis no matter how you try to add it up.
    17 May 2013, 10:39 PM Reply Like
  • dragos2901
    , contributor
    Comments (74) | Send Message
     
    The government will control the monetary system when there will be no monetary system at all, aka no paper money.
    18 May 2013, 02:41 AM Reply Like
  • dragos2901
    , contributor
    Comments (74) | Send Message
     
    I don't see a the sense of cheerleading gold when gold and the miners are dropping everyday. That is a fact. The rest are comments.
    I bought jewellery gold in 2004 new, from the store, at 50% discount from the market. There was strong demand at that point, but the price was low relative to the paper price. Eventually physical gold caught up to the paper gold. Sold it a couple of months ago as bulk and still made more than double. The point being you should never fight the market.
    After 12 years of bull market, any bull market is long in the tooth. For the bulls, it's them who should get a clue.
    18 May 2013, 02:38 AM Reply Like
  • s.laycock
    , contributor
    Comment (1) | Send Message
     
    With everything happening, I just wonder why prices can drop if Germany is owed 3,400 tons of gold!?
    18 May 2013, 09:52 AM Reply Like
  • Russ Winter
    , contributor
    Comments (691) | Send Message
     
    The CoT data for gold had the positioning as of last Tuesday. POG was $1,420 at that point. Managed money continued to modestly reduce long positions to the lowest level since 2008. But the big story was the continued reduction in the position of producers, who have now only hedged 27,066 contracts, or 2.706 million ounces. This represents a substantial reduction off of last week’s 37,463 contracts. In other words, producers in general — or perhaps one or two large producers – were in the market during the week buying and closing out roughly 1.04 million ounces of gold hedges.

     

    This tells us the gold producers have little future production to deliver to the paper Comex market. Last October, they had over 20 million ounces hedged. Most of the 2.706 million ounces still hedged is spread out over months, if not years. It may also suggest that gold producers prefer to sell their gold directly elsewhere and bypass the Comex altogether as a legitimate place to conduct business. That in itself would be a huge event. The commercial and producer indicator on its own is very bullish, but this seems especially so because of its challenge to the paper gold Comex “market.”

     

    http://bit.ly/10zyN8n
    18 May 2013, 02:38 PM Reply Like
  • Petrarch
    , contributor
    Comments (1150) | Send Message
     
    Gold is still a store of value...in Zimbabwe

     

    No wait...they use the USD in Zimbabwe...

     

    scratch that about gold...

     

    Gold falls due to USD and US economic strength. Lower fiscal deficits, lower trade deficits in the US. All hurt gold.

     

    P
    18 May 2013, 03:46 PM Reply Like
  • mikeginn
    , contributor
    Comments (347) | Send Message
     
    Gold Demand and Supply – Q1 2013
    Q1 saw a strong resurgence in demand for gold jewellery, bars and coins; however, overall demand was down 13%. Outflows from ETFs accounted for the bulk of this decline; excluding these outflows overall demand grew year-on-year.

     

    World Gold Council
    http://bit.ly/nDDkB4
    19 May 2013, 07:45 PM Reply Like
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