Gold Miners Continue To Collapse, Near Term Buy Level In Range
Gold miners have been the worst performing sector in the last six months. The charts on stocks like Randgold Resources Ltd. (ADR) (NASDAQ:GOLD) and Yamana Gold Inc. (USA) (NYSE:AUY) are truly scary as they have seen drops of over 30% in that time frame.
Since gold traded at its all time highs, I warned about this collapse. Too many individual investors bought into the hype and loaded the boat on these miners and the commodity itself. Whenever the media pumps it and radio/TV commercials pump it as well, the top is in. Once all the average investors have bought, the institutions reverse their positions and flush it.
The buy price on the miners is getting close for a near term bounce. However, it is just a near term play as further downside will be see. Watch the $36.00 level on the Market Vectors Gold Miners ETF (NYSEARCA:GDX). It is currently trading at $38.38, -0.99 (-2.51%).