Gold miner stocks are today's hot sector as the metal shoots higher


Beaten-up gold miner stocks are strong across the board as precious metal prices move sharply higher and take out key technical resistance levels; Comex gold jumped $41.40 (+3.3%) to settle at $1,314.10/oz., the highest level since April 14, and silver added $0.87 (+4.4%) to end at $20.65/oz..

Among today's winners: EGO +8.5%, AGI +8.5%, BTG +8.1%, SBGL +8.1%, SLW +5.5%, AUY +5.3%, AUY +5.2%, KGC +5.2%, GG +4.8%, NG +4.4%, AU +4.1%, ANV +4%, GFI +3.8%, ABX +3.2%, NEM +2.8%, IAG +1.7%.

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Comments (21)
  • pagreen1966
    , contributor
    Comments (661) | Send Message
     
    Don't forget $RIC, currently up 13% on the day!
    19 Jun 2014, 03:37 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (10235) | Send Message
     
    Shorting (DUST) is one way to take advantage of this opportunity this year.
    19 Jun 2014, 03:39 PM Reply Like
  • Stock Market Mike
    , contributor
    Comments (3509) | Send Message
     
    Or go long JNUG. I was in it for a quick trade from $16 to the mid $20's. So obviously oversold back then. Sure didn't see this one coming!

     

    -Mike
    19 Jun 2014, 06:54 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (10235) | Send Message
     
    What are your thoughts on the constant leverage trap?
    19 Jun 2014, 07:05 PM Reply Like
  • techy46
    , contributor
    Comments (11209) | Send Message
     
    Someone bought 2.9 million ounces, 45-50 tons, of gold at noon for $3.77 billion and that shot gold up over $40 ounce plus miners and all related ETF's.
    19 Jun 2014, 03:51 PM Reply Like
  • haleiwahu
    , contributor
    Comments (4000) | Send Message
     
    I wonder who or how that 2.9mil ounces was purchased? That may have been in addition to the 1.1million ounces purchased by Russia's Central Bank in May http://bit.ly/1noaK3I
    20 Jun 2014, 10:49 AM Reply Like
  • Special Situations and Arbs
    , contributor
    Comments (1353) | Send Message
     
    Chris-are you short DUST? I shorted a little in the past.....made my stomach uneasy the way it moves...up and down

     

    I am long EGO,AUY,RGLD, and NGD
    19 Jun 2014, 03:52 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (10235) | Send Message
     
    Yes. At the beginning of the year I wrote long dated (DUST) calls at $30 and $20. So far so good.
    19 Jun 2014, 03:54 PM Reply Like
  • Special Situations and Arbs
    , contributor
    Comments (1353) | Send Message
     
    Nice trade.

     

    How you do size short trades accurately ($DUST, $VXX, $TVIX) where the upside is infinity? Would you ever cover? I find this difficult.
    19 Jun 2014, 04:00 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (10235) | Send Message
     
    I find this difficult too. I would say that I size conservatively. Hard to get right, though. That being said, in a world with infinite volatility, we will have bigger problems than the number of 0s on a piece of paper indicating the value of our securities. Instead, if we are still using our Bloomberg monitors, it will be only to bludgeon each other over the head while fighting for scraps of food.
    19 Jun 2014, 04:04 PM Reply Like
  • Special Situations and Arbs
    , contributor
    Comments (1353) | Send Message
     
    Thanks for the reply...and the laugh!
    19 Jun 2014, 05:05 PM Reply Like
  • Patent News
    , contributor
    Comments (1464) | Send Message
     
    dead cat bounce!!
    19 Jun 2014, 04:02 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (6742) | Send Message
     
    Although not gold, (AG) is up 5% today and is recovering from a bottom of $8/share.

     

    Shorting (DUST) has worked well over the last year as shares fell to $17 from $80. But how much does it cost to short it?
    19 Jun 2014, 06:01 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (10235) | Send Message
     
    I have generally set it up via writing calls each month and prices above and below the market price.
    19 Jun 2014, 06:13 PM Reply Like
  • moneysaver
    , contributor
    Comments (53) | Send Message
     
    PZG up 9%.
    19 Jun 2014, 08:27 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (6742) | Send Message
     
    http://seekingalpha.co...
    19 Jun 2014, 08:35 PM Reply Like
  • kevaday
    , contributor
    Comments (6) | Send Message
     
    This is the start of the precious metals move we have all been waiting for. Get on board before the share prices go much higher.
    19 Jun 2014, 08:27 PM Reply Like
  • Shareholder21
    , contributor
    Comments (6) | Send Message
     
    Does anyone want to comment on the negative remarks about gold made by a very large bank just a week ago? My comment at the time was that banks wanted to drive down the price of gold in order to fill their vaults with cheap gold.
    19 Jun 2014, 08:28 PM Reply Like
  • Sandiegoman
    , contributor
    Comments (23) | Send Message
     
    According to ZeroHedge there was a 50 ton buyer out there. I think central banker when numbers get that big. There aren't too many banks willing to plunk down that much. It really makes me wonder why though. The calculations I have done on my own and what I have also seen makes it seem like there has been a growing shortage. There is about 2500 tons consumed a year but the top producers only made around 1500 tons. I can't confirm all of the numbers because I could only use what was reported. But it does beg a question.. why now?
    19 Jun 2014, 08:57 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (6742) | Send Message
     
    I think the reason central banks are buying gold is simply to back their currency. Gold seems the most logical since it doesn't swing as much as silver, generally doesn't lose much value over time, and is less volatile than oil. Thus, in theory, we are returning to something similar to the gold standard, but it won't be truly like the gold standard of the early 1900s.
    19 Jun 2014, 09:09 PM Reply Like
  • lutherwmitchell
    , contributor
    Comments (34) | Send Message
     
    consider the math on the large gold trade - up $40 oz
    Nice increase in value for a day
    20 Jun 2014, 09:09 AM Reply Like
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