PM Miners: Of Blood in the Streets, and Catching Falling Knives

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Jim H's picture
Jim H
Status: Diamond Member (Offline)
Joined: Jun 8 2009
Posts: 2379
PM Miners: Of Blood in the Streets, and Catching Falling Knives

Every time I think we are at the stage of a final, cathartic puke on the mining stocks.. they take another 5% down day.  Today is another of those 5% (average) down days... and you just have to wonder when the world wakes up to the fact that these companies own Gold and Silver in the ground, and that this is where the puck is going (real money, real stuff, vs paper).  

GDXJ, junior miners ETF, is at a 52 week low, down 3.8% right now

GDX, major miners ETF, is at a 52 week low, down 3.0 %

IAG (IamGold) P/E down below 7.. a deep value stock.. also sporting a 3.8% dividend.  Down 5.9% as I write...  

Miners have never in my experience been more out of favor.. even many Goldbugs have disowned them as just another "paper" investment that is prone to manipulation, etc.  But there are real companies out there, with rights to real metal in the ground.  Unless something has fundamentally changed about how the world works, I believe that there will be fortunes made by those who are saving dry powder now and can invest in the right mining stocks. 

Is today the final capitulatory end of the selling?  How low can they go?  Will they ever go up again?  Will metals ever go up again?  

I will update the thread with my knife catching exploits... bought some RVM on Friday, and it's the only miner going up today.. so I am not bleeding yet    : )

Oh, and Bitcoin is over $36 today.   

 

jughead13's picture
jughead13
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Joined: Dec 4 2011
Posts: 8
Sorry.....

But too many of the "sources" I use suggest that a catharsis is approaching....Rick rule, and a swiss advisor I respect, feel another selloff to bring not only the Dow/s&p/equities, but also the commodities, including the PM's....down in a purge to capture all the stops below 26 in silver and 1500 in gold......maybe not a protracted down turn, but then the "sell in may and go away" theory may be coming early.....and the lower levels could persist for months....I'd hate to see it, but.......Jughead

jughead13's picture
jughead13
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Joined: Dec 4 2011
Posts: 8
On the other hand....

I shouldn't leave without expressing the other side.....e.g. Jim Sinclair, whose opinion I respect most of all(along with that of CM), suggests the bottom will be in by the end of March....and Marc faber, who has expressed that maybe 1400 will be the bottom in gold this time around.....and FOA/FOFOA say, pay no attention....as long as you have some gold, you will do just fine through the end blowup in the coming economic holocaust.....ah yes, you place your bet and takes your chances.....

jcat3022's picture
jcat3022
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Joined: May 9 2012
Posts: 78
today was a real bloodbath

today was a real bloodbath for the miners.  What I found unusual was that gold didn't take a significant hit (think it ended up $0.10 or so), but good companies like AUY were down over 6% with above average trading.

real bizarre stuff.  Don't know where the bottom is, but if can't be too far off.  I've been keeping some powder dry for UGL and waiting on a day when I know the bottom is in and gold goes up (without Bernanke having to muster a word). 

Adam Taggart's picture
Adam Taggart
Status: Peak Prosperity Co-founder (Offline)
Joined: May 26 2009
Posts: 2934
This thread has been moved to the Gold & Silver Group

This thread has been moved to the Gold & Silver Group, which is the best vehicle for important discussions -- like this one -- on major developments related to the precious metals:

http://www.peakprosperity.com/discussion/81092/pm-miners-blood-streets-a...

Please continue making comments there.

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