I've got ABX in the 34's, NEM at 45, GG at 34, IAG at 7.50, GDX in the 36 area, GLD at 160. I'm dying a slow death. this is insane. how can they print money and not have inflation? something has to give.
Gold stocks are not a good investment because the banksters can (and do) create artificial gold supply through lending and derivatives. Meanwhile, while spot price is artificially suppressed (which could continue for a long time), operating costs will continue to climb. Essentially, they have turned gold into another fiat currency. See the series or articles ending with zerohedgeDOTcom/news/2013-03-16/guest-post-gold-manipulation-part-3-systemic-risk-gold-manipulation
Having said all that, IAG is still a good TRADE (not investment) at these levels because it is worth about 3.5 billion today and trading at 2.5 billion. Some people will make some money on this market inefficiency within the next year or so. I plan to be one of them.
I read those articles on ZH a while back and more recent ones are saying that "Physical" gold and silver demand has spiked the first quarter this year. Some people are getting wise to the game. I agree that GDX is nothing more than a cheap derivative and is only as good as the institution willing to honor it whereas gold miners or physical gold has real worth. More and more people will realize it and eventually Gold and PM stocks in general will get more respect.
It doesn't make sense I agree. I will keep averaging down if it keeps dropping. Gold is trading at historical low ratios versus miners and forward PEs. I think we are just early to the next Gold rally. There will be another financial crisis and when it happens Gold will rally again. Perhaps as soon as May when the debt ceiling limit hits again or when people, 'Sell in May, go away' because it rhymes! Miners got too aggressive with expansion and debt and stock dilution. Now they will be more conservative IMO.
"Because DEFLATION" Yes, BOB, deflation is so strong, so even drunk Analysts calling 20k on DOW.. Wake up!!! What deflation? Look at the stupid Stock market, which runs on drugs rather than on fundamentals... Gold also... "We print as much as we can" that's why Gold should drop to $1200.. Whole Market place running buy bunch of FOOLS! Wake up people.. Look around! EZ official Unemployment rate 12% and those Idiots rally as well, who cares about reality... Everything is cool while you on drugs.. How about reality check? 1-2-3. are you copy? 10/4
I feel your pain literally. My only miner that is up is slw. On average I am down nearly 20 percent on miners. I average around $9 on IAG. My largest position. It does feel like a slow bleed. I think we have to remember that these stocks have much larger swings in both directions. 20 percent isn't really that large of a "short term" loss when considering the upside. I was up almost 50 percent in IAG back in October. Ouch!
I hope so bu tthey are talking market crash to 25% of where we are today. ABX, IAG, NEM, GG, GLD, GDX, etc.. will drop too even if gold hits 2500 an oz. we'll be broke soon. no market, no jobs, no seex, no nothing.