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Gold stores fortunes decline along with the metal

  • Contrarian gold bulls trying to time a bottom for the metal may want to keep an eye on the operations U.K. pawnbroker H&T. Its Gold Bar chain of stores set up to take advantage of the metal's bull market is down to 5 outlets from 55 a year ago, with CEO John Nichols expecting to shutter the last 5 within the next year.
  • If gold perks up again, so will the stores.
  • The stock is off 55% YTD and nearly 70% from a peak 2 years ago (at about the same time gold was peaking).
  • Gold ETFs: GLD, IAU, SGOL, PHYS, AGOL, DGL, UBG, DGP, UGL, DZZ, GLL, DGZ, UGLD, DGLD, GLDI.
Comments (4)
  • WhitneyB
    , contributor
    Comments (209) | Send Message
     
    Hard to find much interest in a story about a British pawn shop chain's woes - or much connection to the price performance of the metal. "Spot minus X" should equal profit regardless of where spot falls on any given day, month or year.
    13 Aug 2013, 08:23 AM Reply Like
  • 6151621
    , contributor
    Comments (1169) | Send Message
     
    Hi Whitney, I agree that this story isn't likely that relevant to GLD and the such. That's a deteriotation in SA quality. However, "Spread = Spot - X" is likely true in a limited range. The Spread likely transitions to Spread = ~[(Spot - X)/Spot]. Lower $ or Pound per ounce. ~Kevin
    13 Aug 2013, 10:05 AM Reply Like
  • 55mph
    , contributor
    Comments (82) | Send Message
     
    inventory was the killer here.
    13 Aug 2013, 11:01 PM Reply Like
  • solarcircle
    , contributor
    Comments (283) | Send Message
     
    so no one wants to pawn or sell their gold at these prices while Asia is on a buying rampage. Sounds bullish to me.
    14 Aug 2013, 02:06 AM Reply Like
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