Mining stocks are taking a bit of a hiding following China's slowing GDP growth and the sell-off...


Mining stocks are taking a bit of a hiding following China's slowing GDP growth and the sell-off in precious metals. Rio Tinto (RIO) -4.5% premarket, BHP Billiton (BHP) -3.6%, Barrick Gold (ABX) -3.6%, AngloGold (AU) -5.2%, IAMGold (IAG) -1.2%, Gold Fields (GFI) -5%, Goldcorp (GG) -3.9%, Kinross (KGC) -5.1%, Seabridge Gold (SA) -2.8%, Newmont Mining (NEM) -3.4%, Freeport-McMoRan Copper & Gold (FCX) -2.85% and Anglo American (AAUKF.PK) -3.9% in London. NovaGold (NG) fell 13% on Friday.

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Comments (3)
  • Doug Eberhardt
    , contributor
    Comments (4828) | Send Message
     
    Meanwhile, here is the article that Seeking Alpha won't let me post where I show the truth: Gold and Silver Doom and Gloom or Crack Up Boom? http://bit.ly/16XEYEG
    15 Apr 2013, 06:36 AM Reply Like
  • Doug Eberhardt
    , contributor
    Comments (4828) | Send Message
     
    Meanwhile, and I say this as a fan of Seeking Alpha thus far, here is the article that Seeking Alpha won't let me post where I show the truth: Gold and Silver Doom and Gloom or Crack Up Boom? http://bit.ly/16XEYEG
    15 Apr 2013, 06:39 AM Reply Like
  • TDWelander
    , contributor
    Comments (624) | Send Message
     
    I read most of the second half of your 16xeyeg article. Sounds pretty accurate except: the world central banks now control the world economy for the first time in history. Since they report to governments who want to inflate their way out of their debt without seeing the inflation posted to the economy, the central banks will do everything they can to see stable currency prices relative to precious metals.

     

    So the long term view for gold and precious metals is a stable gold and precious metals prices to slightly declining gold and precious metals prices; as engineered by the central banks to keep their governments from suffering directly from their currency inflation to pay their beyond outrageous debt most places.

     

    Probably the largest net effect along with other considerations, is the continued reduction in the middle class and disposable income of the middle class and the poor generally.

     

    Or governments appear to be selling out the middle class and poor
    through hidden inflation, lower, less, or much less disposable income to obtain as much currency stability as they can get.

     

    The scary part is this abomination seems to be working so far. Seems to have been in effect now for about a year.

     

    Why an abomination? Because the biggest, most important unwritten rule for growth is maximizing income across the complete spectrum of humanity. This policy stunts growth in a very big way, reducing or stagnating income to the two largest groups of humanity, the poor and the middle class. And also does it in one of the most insidious and cruel ways, significant hidden inflation on these two income groups.

     

    Nearly everyone to date has been ignoring this significant hidden inflation. Just damming. The nonsensical market basket of goods measuring method is still getting a pat on the back. Or the blind are leading the blind. I guess that is not new.

     

    So far, I do not see anything to upset their apple cart. If you see anything, I would appreciate hearing about it.
    15 Apr 2013, 03:21 PM Reply Like
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