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Gold miners (GDX -4.5%) are getting destroyed as gold prices cross into bear territory....

Gold miners (GDX -4.5%) are getting destroyed as gold prices cross into bear territory. Capitulation, if it’s here, would mean a true bottom in price, and Tocqueville Gold Fund's John Hathaway says that's what we’re approaching; he sees strong macro fundamentals for gold, investor sentiment at a negative extreme and compelling valuations in mining shares - "a contrarian's dream scenario."
Comments (18)
  • scoops12
    , contributor
    Comments (75) | Send Message
     
    Yep, it can't get any worse. Oh wait.....
    12 Apr 2013, 01:03 PM Reply Like
  • Interesting Times
    , contributor
    Comments (10811) | Send Message
     
    In time we will know if a bottom has been reached.. I find it funny this huge drop is happening on the day BB talks!!
    12 Apr 2013, 01:21 PM Reply Like
  • XRTrader
    , contributor
    Comments (609) | Send Message
     
    This move has really been crazy in the miners! They didn't participate that much when gold was rising - so it's a little crazy that they drop as hard or harder then gold when gold is falling!

     

    Entered GDX at $40, and then got stopped out at $38 for a 5% loss.

     

    I think investors have unfairly abandoned anything that looks like a precious metal or commodity. I have a position in steel (MT) and ore (CLF). Will add back GDX and/or SLV/GLD when it looks like there is some bottom under the market.
    12 Apr 2013, 01:24 PM Reply Like
  • theo285
    , contributor
    Comments (3) | Send Message
     
    this is depressing, very. The world's central planners are in desperate shape, and they have printed and continue to print paper money at rate unprecedented in history, and, yet, gold goes south. :(
    12 Apr 2013, 01:25 PM Reply Like
  • theo285
    , contributor
    Comments (3) | Send Message
     
    Very depressing. The desperate central planners on the planet are printing money at an unprecedented rate and yet gold goes down in value. I may start drinking again.
    12 Apr 2013, 01:26 PM Reply Like
  • Deney_Terrio
    , contributor
    Comments (246) | Send Message
     
    This is exactly what contrarians wait for, euphoric, blow-off tops and gut-wrenching, waterfall capitulations. It is in these extreme environments that offer the most value to contrarians. No need to stand in front of a freight train or try to catch a falling knife. Rather, it is best to wait for price to consolidate first, then start nibbling on breaks in the opposite direction.
    12 Apr 2013, 01:38 PM Reply Like
  • David48
    , contributor
    Comments (5) | Send Message
     
    Fear not. Markets follow crowd behavior which is fickle. The Cyprus gold sale appears to be the catalyst for this drop, but clearly, the amount sold will not suffice to keep gold down long term. Though Cyprus has an urgent need for cash, anyone with capital will want to protect their property with real money, as paper assets get watered down. Have patience.
    12 Apr 2013, 01:40 PM Reply Like
  • kmi
    , contributor
    Comments (4018) | Send Message
     
    The Cyprus gold sale rumor has amazing stickiness.

     

    Cyprus has denied it but the denial has been vastly under-reported compared to the initial rumor:

     

    http://yhoo.it/10WoN5e
    12 Apr 2013, 02:15 PM Reply Like
  • iyamwutiam
    , contributor
    Comments (80) | Send Message
     
    As for Cypruss gold I have read that they have reversed their earlier denial. I really think this is tied into Cyprus Gold as the banks will be able to pick up 10 tons of gold for a much cheaper price with todays market action. With all this quantitative easing (Japan in particular and the ripple effects it will have by forcing Korea amongst others to also ease) I just can't see the price of Gold NOT rebounding.
    12 Apr 2013, 02:24 PM Reply Like
  • htmortimer
    , contributor
    Comments (101) | Send Message
     
    It is very hard to discern what is going on here; the Cyprus announcement certainly triggered some sales as did the technical analysis and the fear that more countries (Portugal? Spain? Italy?) will be forced to sell gold as well as the buoyant stock market and the reduced fear of inflation. Quite a lot for a single day.Bottom line, we haven't really solved any of the economic problems that loomed large yesterday, last week, last month and last year and until we do we still face inflation, deflation or both and if that is what lies ahead, then gold is the right hedge.
    12 Apr 2013, 02:45 PM Reply Like
  • evan.prospect
    , contributor
    Comments (694) | Send Message
     
    My guess is that we are going through a similar time as 1975 or 1979 when gold declined after a substantial run-up. What happened after in 1977 until 1980/1981? The winner gets a gold coin ;)
    12 Apr 2013, 03:07 PM Reply Like
  • FrankinMiami
    , contributor
    Comments (26) | Send Message
     
    These "pros" keep calling a bottom yet the miners dig right through them. I'm not convinced...better places to take risks than hoping miners recover and trying to catch a bottom.
    12 Apr 2013, 03:38 PM Reply Like
  • ssf88
    , contributor
    Comments (7) | Send Message
     
    if you sell your miners now you are confirming your losses, just be a little patient and you will not regret it.
    12 Apr 2013, 03:39 PM Reply Like
  • 55mph
    , contributor
    Comments (82) | Send Message
     
    500 tons of paper gold was sold to create the weakness. Now the stops get hit and we breath a little at slightly lower prices. Goldman, Jeffrey Christian and the boys all made good on their predictions. Time for a Crisis. Gold goes higher from a lower level.
    12 Apr 2013, 06:11 PM Reply Like
  • eagle1003
    , contributor
    Comments (1523) | Send Message
     
    Today's decline was not "gut wrenching" enough to dislodge the gold bugs from their long positions. Many see the recent decline as a great opportunity to load up on GLD and GDX. The tougher nuts are prepared to ride out the decline to at least 1300 because that has been a turning point that a few well read gurus have called for (like Marc Faber). To really shake out the longs, a drop below $1200 is what is needed to get most goldbugs to throw in the towel.
    13 Apr 2013, 03:09 AM Reply Like
  • theo285
    , contributor
    Comments (3) | Send Message
     
    Every country is printing money they don't have and debasing their currencies, while every central bank from all of those countries are buying gold. You don't think they could be manipulating the price, do you?
    13 Apr 2013, 05:43 AM Reply Like
  • ssf88
    , contributor
    Comments (7) | Send Message
     
    JPMorgan is bullish on gold, listen to their report on March 21st titled “Now is the time to buy gold.” They expect $2000 probably by the end of the year. Some light at the end of the tunnel ?
    http://bit.ly/16WYmBC
    14 Apr 2013, 09:06 PM Reply Like
  • goldbug50
    , contributor
    Comment (1) | Send Message
     
    Would like to send a thank you note to those responsible for the shake down. Loaded up on silver maples and eagles on friday
    14 Apr 2013, 09:09 PM Reply Like
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