Gold miner ETF sinks to five-year low, gold closes at lowest since July

The Market Vectors Gold Miners ETF (GDX -5.5%) plunges to a fresh five-year low thanks to the newest PMI manufacturing data, which climbed to the highest reading since 2011; BTIG analyst Dan Greenhaus calls the data "stunning,” and bad for precious metals.

Comex gold dropped $28.50, or 2.3%, to settle at $1,221.90 for its lowest close since July; the SPDR Gold Trust (GLD) is down 2.5% to kick off December’s trading.

Silver slumped 3.7% to $19.29, also the lowest since July.

ABX -5.3%, NEM -3.8%, GG -4.6%, KGC -3.4%, GFI -3.5%, NGD -8.2%, EGO -7.5%, AEM -7%, AUY -5.5%, AGI -8.9%, SLW -5.7%.


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Comments (18)
  • Papa of Four
    , contributor
    Comments (752) | Send Message
    Think we go lower into January, Will be a buyer then
    2 Dec 2013, 03:31 PM Reply Like
  • user878
    , contributor
    Comments (163) | Send Message
    good luck waiting till January to get a better price.
    Chasing bottom means either losing your shirt or nvere get in.
    I truly believe and guess that today is the best day to get in.


    remember me!
    2 Dec 2013, 03:51 PM Reply Like
  • Papa of Four
    , contributor
    Comments (752) | Send Message
    Dont need to hit bottom, Santa clause in broader market makes it worth while to wait to shift assets. Not to mention personal tax position on gains.
    2 Dec 2013, 04:15 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11220) | Send Message
    Gold is priced in dollars.


    QE will invent ~$1 trillion next year...on top of ~$1 trillion invented this year.


    Meanwhile, due to mining cutbacks and hoarding in India and China, there is only a 1% increase in gold available to purchase each year.


    Gold may not increase in value..but in relation to dollars in existence the dollar WILL lose value vs. gold.
    2 Dec 2013, 03:41 PM Reply Like
  • MisterEC
    , contributor
    Comments (424) | Send Message
    Called INFLATION, Hyper inflation.
    7 Dec 2013, 09:38 AM Reply Like
  • Rich Knot
    , contributor
    Comments (2) | Send Message
    in pounds sterling 680 looks a likely bet other words ,another ten per cent to go
    2 Dec 2013, 03:43 PM Reply Like
  • hummerh25
    , contributor
    Comments (99) | Send Message
    My $1150. Target is next, then $1050.
    Making a killing shorting the gold miners.
    2 Dec 2013, 03:56 PM Reply Like
  • jmannsc
    , contributor
    Comments (35) | Send Message
    Congrats but shorting is dangerous at this point
    2 Dec 2013, 05:14 PM Reply Like
  • filipo
    , contributor
    Comments (4652) | Send Message
    Sounds like shorting gold became a patriotic game: "let them buy our gold, we don't need it anymore........"
    3 Dec 2013, 12:41 AM Reply Like
  • Marco Mazzocco, CFA
    , contributor
    Comments (193) | Send Message
    Lots of supoport around 1200 but doesnt mean it can't be broken. I already covered for a nice trade. Will definitely revist maybe to the longside this time.
    2 Dec 2013, 04:23 PM Reply Like
  • WhitneyB
    , contributor
    Comments (895) | Send Message
    Too bad consumption isn't keeping pace with the stunning manufacturing numbers. Ballooning inventories aren't going to help the economy grow in the long run. Deflation, anybody?
    2 Dec 2013, 05:56 PM Reply Like
  • urinmymachine
    , contributor
    Comments (4) | Send Message
    Yes, as soon as it hits $900 I am a buyer...
    2 Dec 2013, 06:26 PM Reply Like
  • Lumia_920
    , contributor
    Comments (102) | Send Message
    Bought some today for a nice ride this week.
    2 Dec 2013, 08:45 PM Reply Like
  • Brian Bobbitt
    , contributor
    Comments (2084) | Send Message
    Do I know what's going on with Au and Ag? Does anyone? Well, I think I have an idea. I am not however sure of my timeline for the new wave up in the PM's [precious metals]...


    My Horizontal parallax view from the sea is as follows. If you follow me read all of this...


    Debt, printing presses, government run interest rates, (Other than the US Marines, what does the government to right?) government run news media, medicine, and the post office not to mention some laws that are not being enforced, bringing into question all of them.


    So, why are the PM's so weak in here, and when are they going to head back up if ever?


    Right now, it looks as bad for the PM's as it did for Auburn last weekend. But, looking on the bright side [shiny white metal], has a bright future adding up all the facts.
    Silver and gold were storm-tossed and taking on more water today. The Gold price just barely held at the water line sinking $28.30 (2.3%) and ran aground like a submarine hitting a sandbar at $1,222.30. After the close, gold went down to $1,218.60, and at this writing at midnight, has climbed to $1,221. Silver nearly filled the bilges losing nearly 75 cents (Almost 4%) & closed in the COMEX at $19.23, but after hours went lower to 19.07. and is now back up to 19.23. as I write.


    Both PM's continue to fall along the lower limb of the Bollinger bands. Technicians who live and breath those tea leaves will be forced to buy and that may be the answer as to who is taking the other side of the sellers trade. The thinking is 95% of the prices fall within those bands, and when it goes a little outside, it is considered a buy or reversal The last time the PM's broke thru last June on the day of the low. Are Au and Ag in a reverse bubble? See, I can use hot lash words too. No, I don't care for the bubble word, I like simple things like good and bad weather, or overbought or oversold. Would you agree with me that the PM's are approaching [or at] oversold?
    Methinks pretty soon now, the PM's ought to be at the end of the selling. Any day might mark the beginning of the last sell-off, before the big show begins that I feel must come because: SOON we are gonna run out of sellers. I think sooner than later.


    There are big wheels with a lot riding on the price of the PM's: the Federal Reserve , the world's central banks. And one heck of a lot of investors just waiting for reality to catch up with their inflationary tactics.
    I heard from someone who reads in Fred Hickey's Hi Tech letter. "The Fed has now accumulated $2.2 trillion of treasury securities and more than $1.4 trillion of mortgage backed securities, and its balance sheet is nearly $3.9 trillion, FIVE times the level in late 2008, when it began QE1. . . . The Fed now owns nearly half of all treasuries maturing between ten and fifteen years."


    So the Fed has us up in an inflationary stance in US treasuries, lowering interest rates nearly to zero so it made no sense for investors to buy anything but "risk-free" treasuries, except it turns out the Fed owns a vast amount of those treasuries. When interest rates rise, their value declines.


    The bond traders must feel like they are tied to the tracks by Snidley Whiplash, and their ain't no Mountie coming to the rescue.


    But that's tick turds and not the real problem. Bernanke has backed the Fed iout on to a narrow ledge. They can't sell without bringing on big time deflation. Besides, who would buy them in a falling market?


    Not me baby! You wanna use the words 'reverse bubble, the bond market could fill that bill. Think of the bonds as a house of cards filling the superdome, and outside every door is a fellow with a four horsepower leaf blower. If one of them gets in, just one....All that bond bubble will need is a darning needle stuck into it. When rates start rising, banks will begin pulling those reserves out of the Federal Reserves' hands, where they have been sequestered and "sterilized," say, Oh, roughly $2.5 trillion. And that $2.5 trillion, when the banks loan it into the money supply, will increase, Oh, say, ten-fold.


    Gnashing your teeth inflation does not begin to describe the catastrophe Bernanke has made possible. You're gonna need a thick piece of leather to bite down on. Better pray it doesn't come.


    All I am doing is mirroring and parroting what I see and hear, so don't blame me. I take this in from many sources and attempt to find out where I am wrong and I just can't see that my argument does not hold water. Friday the Dow made a new high (16,174.51) Today it dropped again and closed lower again. Any time the DOW does that, I wince and want to call my broker to sell all the mutual funds,but I bow to his superior knowledge and put the phone down furtively. The S&P500 did the same. That says the correction has begun, but again, what do I know? Just a bit of flotsam on a faraway beach. I still climb coconut trees to get one instead of going to the store. At 67, I gotta quit doing that.


    Conclusion? You want a conclusion. HAH! Folks in H E double L want ice water. Oh, okay...


    I haven't got a clue. When Ag went below $26.26, I was devastated and have been wincing in pain daily but with my attack on the market I have actually accumulated not lost. Yes, my PM's have lost value, but my numismatics and everything else is rising, so a vacation and even food may be in the offing for next year, and my real conclusion is this is very near a fantastic buying opportunity. I just can't fathom the metals much lower and not rising. I am signing contracts tomorrow for more numismatics, and have agreed to purchase some 90% coin on Friday. Not a lot, but it adds to my stash, and lowers my average per ounce investment. I am also talking about another thousand ounces at this level. Boy, am I ever a thick headed investor. I am totally convinced we will reap rewards soon. I actually hope not, because it does not bode well for our country, but I calls 'em as I sees 'em.
    Capt. Brian
    The Lost Navigator
    3 Dec 2013, 12:07 AM Reply Like
  • filipo
    , contributor
    Comments (4652) | Send Message
    Here's the explanation:
    3 Dec 2013, 01:09 AM Reply Like
  • ltsgt1
    , contributor
    Comments (1647) | Send Message
    "I take this in from many sources and attempt to find out where I am wrong and I just can't see that my argument does not hold water."


    You took those words right out of my mouth. Maybe I shouldn't be looking for bias confirmation here but I can't find where I'm wrong either.


    I'm still waiting for $1100 but bought another 5 AE for $1270 earlier today. I wish the big boys would just get this over with and take the POG down to $1100 already.
    3 Dec 2013, 04:12 PM Reply Like
  • Papa of Four
    , contributor
    Comments (752) | Send Message


    may not be too disastrous. Social implications have economic effects.
    3 Dec 2013, 04:16 PM Reply Like
  • MisterEC
    , contributor
    Comments (424) | Send Message
    You know how the make the government debt go away? Hyper inflation like the had in Zimbabwe:
    Oh only 400%:
    7 Dec 2013, 09:37 AM Reply Like
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