One thing for sure - with rsi setting a low for several years - If its not the low - then its pretty darn close to it
Using the 75 / 25 rsi - it very well may be time to buy GDX - Also - Pull up a chart of Gold vs GDX - it is around a 5 year low - could be a very nice buy right here
I thought the low was at 48, no 45, no wait 42...opps 40, no 39, no can't go lower than 38. Miners are screwed, too much debt, low yield mines, huge capital expenditure. The price of gold is secondary, these guys were super-inflated and now will return to below value levels. Is it 36, I dunno but I wouldn't try to catch a falling knife.
" Miners are screwed, too much debt, low yield mines, huge capital expenditure."
Which one exactly you are talking about, those I know ABX/GG/NEM making 3.80-4.50/share
with forward P/E below 8 (already) and Dividend 4% and bunch of cash on the balance sheet.
IAG has 2.24$/share Cash, $4.44/share Earnings, Near 4% dividend and trading at $6.15, so?
#$%$ are you talking about?
yesterday was a huge volume day for gdxj it is a capitulation as shorter term investors cut their losses. longer term strong hand investors who believe in the value of the sector are left . the etf sells for 1/100 of an ounce of gold less than anytime since it launched.
golds bull case is only about one thing, negative interest rates. that is fed policy as long as they can see into the future. as any opther scenario bankrupts the federal government. so to believe interest rates will not be negative is to fight the fed. and they say don't fight the fed.