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A blip during a turnaround, or a new leg downward for gold miners (GDX -2.4%)? After stringing...

A blip during a turnaround, or a new leg downward for gold miners (GDX -2.4%)? After stringing together several strong days, South African gold miners take a beating today as gold prices slide after a two-week rally: HMY -6.2%, SBGL -4.2%, AU -3.3%, GFI -2.2%. News that Barrick Gold (ABX -3.2%) will delay production at its Pascua-Lama mine may be adding to jitters over government risk.
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Comments (2)
  • J Collins
    , contributor
    Comments (178) | Send Message
     
    Gold miners are definitely oversold based both on valuation and technicals. That being said, markets can keep selling the oversold and keep buying the overbought. Best approach at this stage will be either to start buying the miners on a dollar cost averaging basis spread over a 3-6 month time horizon or wait till the ongoing correction gets over and then taking any long positions.
    4 Jun 2013, 04:19 PM Reply Like
  • Interesting Times
    , contributor
    Comments (13969) | Send Message
     
    Owning physical is better then the miners. TOO much political and financial issues that can go wrong imo.
    6 Jun 2013, 01:17 AM Reply Like
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