Seeking Alpha

Gold miners large (GDX -4.1%) and small (GDXJ -5.3%) alike are suffering a beat-down after jobs...

Gold miners large (GDX -4.1%) and small (GDXJ -5.3%) alike are suffering a beat-down after jobs data from both the U.S. and Canada beat estimates; gold's gains for the week are entirely erased, and the metal "could melt even faster" if the global recovery continues. ABX -4.2%, AEM -6.7%, NEM -2.8%, GG -4.5%, AU -5.5%, EGO -5%, KGC -5.3%. SLW -2.8%, SSRI -7.3%, EXK -5.9%. GLD -2%, SLV -4.1%.
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Comments (39)
  • jerrycalpha
    , contributor
    Comments (59) | Send Message
     
    Maybe it will only be a gap fill, but most of the miners are loosing money with gold at this price.
    7 Jun 2013, 02:17 PM Reply Like
  • Mongoose
    , contributor
    Comments (144) | Send Message
     
    Keep your powder dry and expect a bottom to occur with in the next 3 mos. Possibly 1100/1200 area. What a steal that will be.
    7 Jun 2013, 02:35 PM Reply Like
  • Jason Burack
    , contributor
    Comments (1817) | Send Message
     
    No mention at all of how PAAS, CDE, HL and SSRI are now all cash flow negative overall. Supply could be coming offline fast and very soon.
    7 Jun 2013, 03:35 PM Reply Like
  • Jake2992
    , contributor
    Comments (825) | Send Message
     
    Demand is coming offline even faster.
    7 Jun 2013, 08:42 PM Reply Like
  • 2tontom
    , contributor
    Comments (73) | Send Message
     
    Those that can should keep producing and quit selling. There is nothing wrong with saving your money in gold and silver if you believe in your product.
    7 Jun 2013, 04:15 PM Reply Like
  • winningtrader
    , contributor
    Comments (2465) | Send Message
     
    Some of the gold miners lose money at current prices and virtually all primary silver miners have some losses. Most primary silver miners faces costs at $25 per ounce and some as high as $30. They can't keep production as they need to pay their costs and in fact they need to borrow or run down cash reserves to pay costs. If the current gold and silver prices last more than a few months, we are going to see fireworks in the industry. I bet that the Chinese are preparing a shopping list of companies and mines they want to buy on the cheap. Once they buy a mine, you never see any of its production ... they just ship it to China.
    8 Jun 2013, 05:34 AM Reply Like
  • Interesting Times
    , contributor
    Comments (164) | Send Message
     
    Funny, I missed the memo that we have a ROBUST world economy !!
    7 Jun 2013, 04:19 PM Reply Like
  • Krustyman
    , contributor
    Comments (677) | Send Message
     
    IT:

     

    Really? :-)

     

    Krustyman
    7 Jun 2013, 07:10 PM Reply Like
  • jpau
    , contributor
    Comments (862) | Send Message
     
    Here's the story of our robust economy

     

    http://lat.ms/16SRpp5
    8 Jun 2013, 06:55 PM Reply Like
  • Krustyman
    , contributor
    Comments (677) | Send Message
     
    jpau:

     

    Thanks for the link. Because of you I just discovered that the way to correctly analyze the economy should be based on the tire rental business. Simple as that!

     

    As mentioned in your article:
    ''The first rent-to-own tire and wheel dealers appeared in the mid-1990s...''

     

    The mid-1990s? Oh yeah, I forgot, we were in full blown crisis at that time.

     

    Krustyman
    8 Jun 2013, 10:10 PM Reply Like
  • jpau
    , contributor
    Comments (862) | Send Message
     
    What the article actually says Krusty is that the first shops in the mid-1990's were selling specialty rims and the like to young urban males, not basic tires to folks who couldn't scrape together enough money to buy them.

     

    I'm glad you can read, yet sorry you can't comprehend.
    9 Jun 2013, 01:24 PM Reply Like
  • Destin
    , contributor
    Comments (533) | Send Message
     
    Remember those 24" chrome spinner wheel/tire packages that all the urban hipsters had to have back in the day? They probably cost them as much per month as their no money down 8-year Escalade note.
    9 Jun 2013, 04:13 PM Reply Like
  • Krustyman
    , contributor
    Comments (677) | Send Message
     
    jpau:

     

    So now let's analyze the economy based on the tire rental business. There is also the hardware and tool rental business if you are interested. :p

     

    Krustyman
    10 Jun 2013, 08:15 AM Reply Like
  • jpau
    , contributor
    Comments (862) | Send Message
     
    there was a funny article in the Onion a long time ago about Bernanke or Geithner waiting for a man to purchase something at Sears hardware so they could report something positive about the economy.
    10 Jun 2013, 07:14 PM Reply Like
  • Krustyman
    , contributor
    Comments (677) | Send Message
     
    jpau:

     

    Here you go! ;-)

     

    Krustyman
    11 Jun 2013, 10:06 AM Reply Like
  • ziggysdad
    , contributor
    Comments (42) | Send Message
     
    No supply what will India and China do now?
    7 Jun 2013, 04:24 PM Reply Like
  • Jason Burack
    , contributor
    Comments (1817) | Send Message
     
    They will be forced to wait. I've seen articles coming out of Reuters, etc recently saying Asian gold bullion dealers have to wait at least a month for large deliveries.
    7 Jun 2013, 05:31 PM Reply Like
  • Jason Burack
    , contributor
    Comments (1817) | Send Message
     
    India is also trying to ban gold by not allowing credit to be used to purchase gold and continually raising the import duty taxes on gold as a punitive measure. It will create a large black market.
    7 Jun 2013, 05:31 PM Reply Like
  • Interesting Times
    , contributor
    Comments (164) | Send Message
     
    This guy didn't have to wait more then 20 minutes! Some have all the luck!

     

    http://huff.to/127sevU
    7 Jun 2013, 05:35 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    Buy coal and iron ore miners instead.
    7 Jun 2013, 04:51 PM Reply Like
  • CanadaPhil
    , contributor
    Comments (85) | Send Message
     
    Care to explain your rather contrarian approach?
    7 Jun 2013, 07:29 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    @CanadaPhil: Coal and iron ore producers have been relentlessly beaten down with the sentiment on coal and the price of iron ore. The demand for both will be there going forward, especially with certain infrastructure cycles. Those that are best poised to survive have charts that look like inverted parabolas, with lows approaching 2009 levels. They are the values in today's market. Be greedy when others are fearful. Long various names that are likely to survive and succeed.
    7 Jun 2013, 09:14 PM Reply Like
  • CanadaPhil
    , contributor
    Comments (85) | Send Message
     
    @Whitehawk: Thanks for the explanation. I've recently bought FSUMF, MT, WLT, CLF and BTU. However, I'm wondering whether these were adequate choices, given that most of them don't seem to have reached the bottom yet. Do you have better companies in mind? What would you monitor to know whether we've hit the bottom? My positions in WLT, CLF and BTU are small enough for me to be willing to add to later on.
    7 Jun 2013, 09:28 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    I am long CLF, VALE, BTU and WLT on today's tape, at or near the lows. I cannot say that there won't be more weakness, but looking at the charts, the short interest, the institutional ownership and the insider buying, I think we are close to the bottom. Other coal names will have a tough time surviving, may get taken over or liquidated - consolidation may make sense. TCK (Canadian met coal producer, among copper and other base metals) is also a name I follow and like, but I am looking for a better entry price, perhaps below $20. Good luck to both of us.
    7 Jun 2013, 09:58 PM Reply Like
  • Krustyman
    , contributor
    Comments (677) | Send Message
     
    I would go with natural gas right now. The most contrarian sector at the moment IMHO.

     

    Bought CDH in Toronto today.

     

    Krustyman
    7 Jun 2013, 11:25 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    Bullish on nat gas as well. As long as we're on the contrarian theme, I'd throw in Canadian oil/gas producers too.
    7 Jun 2013, 11:37 PM Reply Like
  • Investor Talkroom
    , contributor
    Comments (522) | Send Message
     
    I would add VALE to your list. Thou I think iron ore prices will take long time to recover, so would not recommend buying any iron ore miners now. It will take some companies going bankrupt or cutting production before the market stabilizes. BHP and Rio good basic metal miners too.
    8 Jun 2013, 08:37 PM Reply Like
  • Robert Duval
    , contributor
    Comments (6752) | Send Message
     
    Don't let the futures price fool you. The physical price must be a least 2000....right? Keep buying! Don't let these manipulators win.
    7 Jun 2013, 06:14 PM Reply Like
  • tsajames
    , contributor
    Comments (51) | Send Message
     
    Finally, a comment that is spot on! They are forcing via fear people to sell gold and silver. Human nature never changes. This is one of the oldest tricks in the book. I can bet the same writer or writer's also were the manipulator's who told retail investor's to buy apple. Apple was suppose to go to $1600 by mid 2014. They are buying while all are selling.
    9 Jun 2013, 01:20 AM Reply Like
  • Boxed Merlot
    , contributor
    Comments (1586) | Send Message
     
    At last. Now we can finally get rid of that stupid industry and their perceived "rarity". Maybe all those misdirected workers will be retrained to do something useful, like writing algos, tracking cyphers and printing real currency.
    7 Jun 2013, 07:38 PM Reply Like
  • Rinascimento
    , contributor
    Comments (940) | Send Message
     
    Why don't all the gold and silver miners go on strike or sabbatical for a year to shut down physical supply to zero while paper price goes down and let China and Russia drain all the physical from JPM, London, and COMEX to see what happens to gold and silver prices?
    7 Jun 2013, 11:50 PM Reply Like
  • RM13
    , contributor
    Comments (1035) | Send Message
     
    Bottom isn't here until boards' talk about 'bottom' doesn't die. So, we are not there yet.
    8 Jun 2013, 12:32 AM Reply Like
  • Puma69
    , contributor
    Comments (145) | Send Message
     
    The National Debt has continued to increase an
    $2.70 billion per day.
    That's far from a recovery.
    8 Jun 2013, 12:33 AM Reply Like
  • FreeMktFisherMN
    , contributor
    Comments (465) | Send Message
     
    yep. It wouldn't shock me if one more big raid on gold happened maybe even to 1k to shake out weak hands, but man I don't see how the COMEX can even withstand the intense physical buying now (hint, it's taking a lot of re-hypothecating and 'leasing' and swapping already) , let alone if it got that low.
    9 Jun 2013, 10:13 AM Reply Like
  • Kyle Spencer
    , contributor
    Comments (1222) | Send Message
     
    Wait until the more profligate gold miners begin to fail. If gold fails to take off like a rocket on supply concerns, then GLD is going to look like the Titanic about 30 seconds after the ship tore in half.
    8 Jun 2013, 06:23 AM Reply Like
  • Kyle Spencer
    , contributor
    Comments (1222) | Send Message
     
    http://bit.ly/13kIJ4o
    8 Jun 2013, 06:30 AM Reply Like
  • Russ Winter
    , contributor
    Comments (691) | Send Message
     
    Manipulators in Gold Now May Not Be Who You Think

     

    http://bit.ly/11MtRJv
    8 Jun 2013, 12:10 PM Reply Like
  • tsajames
    , contributor
    Comments (51) | Send Message
     
    . Apathy coming from Hedge Fund Managers. Russia, India, China, and other countries buying precious metals are laughing at us for these amazingly low prices.
    9 Jun 2013, 01:25 AM Reply Like
  • jadejet
    , contributor
    Comments (3) | Send Message
     
    Many miners have overspent at the highest prices. A gold price at $1,100 and silver at $18 would serve a good lesson to the industry that they need to be more sensitive to value and to their shareholders best interest. Now they are paying the price through lack of confidence and the accompanying fall in pps. Let them Bleed.
    9 Jun 2013, 09:24 AM Reply Like
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