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Gold (GLD +0.9%) continues its comeback tour, with a big move in the last 30 minutes pushing the...

Gold (GLD +0.9%) continues its comeback tour, with a big move in the last 30 minutes pushing the metal into the green for the session and up to $1,344/ounce.  Technician Mark Newton calls this bounce the beginning of a longer-term bottoming process, and sees the metal back at $1,500 before October. The miners (GDX +2.5%) also continue a big move, inducing the blow-up of another triple-leveraged ETF, the DUST (DUST -7.2%), now off about 60% in less than a month.
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Comments (13)
  • mikemdr
    , contributor
    Comments (10) | Send Message
     
    No one factoring South Africa gold mining strikes that make up 1/6 world gold. Mine owners have it both ways. Prolong the strike, don't have to pay labor, in house gold inventory goes up in value. Win! Supply decreases, demand goes up. Win!
    Strikes ends 2-6 months, new higher gold price pays for labor cost increases Win! Everybody relax, inflation is eventually coming as world finally gets its head out of its butt and world economies grow again. Gold becomes important again as hedge, safety and investment. $ 2,000 an ounce only a few years away.
    23 Jul 2013, 03:34 PM Reply Like
  • Jason Burack
    , contributor
    Comments (1824) | Send Message
     
    There is no way South African gold miners can pay the doubling of wages the mining unions want (after more salary increases) when the primary gold miners have no profit margins and are running their mines cash flow negative with potential production cutbacks or bankruptcies likely (if metals prices don't start going higher faster)
    23 Jul 2013, 04:46 PM Reply Like
  • minecanary
    , contributor
    Comments (647) | Send Message
     
    The metals are still way under their proper prices...but the total silence from the peanut gallery of a month ago is worth a few bucks
    23 Jul 2013, 03:58 PM Reply Like
  • filipo
    , contributor
    Comments (4024) | Send Message
     
    mine,
    I guess, they've done their job, have been paid for ransacking the few idiots whom they convinced of departing of their gold et voilĂ  they can go into oblivion for another ten years... or change names and harass SA again.
    We won't hear of Robert Wagner and alike again very soon.
    24 Jul 2013, 02:54 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (9719) | Send Message
     
    @ minecanary:

     

    Yeah, the sounds of crickets chirping is nice coming from the "gold is going to $700" section of the bleachers.
    23 Jul 2013, 04:11 PM Reply Like
  • thatsforschur
    , contributor
    Comments (61) | Send Message
     
    It seems one doesn't even have to be a contrary investor to see the way gold is going and the "stupid cheap" prices of the miners are finally lifting off too.
    23 Jul 2013, 04:29 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (5656) | Send Message
     
    DUST is my favorite leveraged inverse ETF to short at the moment. So far so good.
    23 Jul 2013, 04:57 PM Reply Like
  • muldoon1959
    , contributor
    Comments (30) | Send Message
     
    Hear hear on the $DUST short, will be taking a position.
    23 Jul 2013, 10:50 PM Reply Like
  • anthonymaw
    , contributor
    Comments (51) | Send Message
     
    Looks like "somebody" is selling their US equities market gains and plowing the profits into gold bullion. "Somebody" knows something....
    23 Jul 2013, 05:03 PM Reply Like
  • jaginger
    , contributor
    Comments (694) | Send Message
     
    RIOM is a solid junior minor which was trashed along with sketchier ones in the bloodbath. At $1350 gold it should earn $.60 per share annually.

     

    RIOM trades under 4x earnings at $2.35.
    23 Jul 2013, 05:04 PM Reply Like
  • convoluted
    , contributor
    Comments (2166) | Send Message
     
    DUST to DUST-it giveth on the way up, and on the way down. It will be interesting to see if NUGT/DUST reach what I call a 'convergence' zone.
    23 Jul 2013, 06:52 PM Reply Like
  • jaginger
    , contributor
    Comments (694) | Send Message
     
    They will indeed converge eventually.....at zero.
    24 Jul 2013, 08:46 AM Reply Like
  • rseiter
    , contributor
    Comments (144) | Send Message
     
    The South Africa mess will be positive for platinum and palladium as well.
    23 Jul 2013, 07:45 PM Reply Like
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