This will only turn around only after a total washout, baby with the bathwater blowout drop in price. Can some of you give me an idea of what the price might be? i would say that GDX should hit in the $17-18 range.
A washout new low will need to be established before the next bounce can occur. $22+ support has been wiped out, and we need to see what the next low turns out to be. $15/$16 can't be ruled out (2008 low). GDX has too many losers in the pack imo, as I own just a tiny stake in GG, which is of course also getting wiped out. SLV is my favorite and has made me nice cha-ching on the bounces. Bullion funds just seem a whole lot safer than miners right now.
$9.99 -- these gold bugs have been holding tight, but once GDX breaks $10 expect the washout will happen soon after. For a lot of these gold bugs who lost big -- they will need to go long CORT to get there money back on a solid biotech gem.
that sounds about right. Obviously it will be a lot lower if POG were to completely collapse. I think the best course of action is to look for what you think is the capitulation, make your buy, but also buy a bunch of puts 6 months out in case you are very wrong.
Personally. I'm looking for $18-19
I'm thinking mid/high teens myself, but then trading at today's level (21) within 30 days of that happening. Gold at $1000 USD is not a reasonable valuation, and that's what miners are starting to price in. It is not possible. Too many people with trillions and trillions and trillions and trillions of USD, Euros, Yen, Yuan, Pounds, Rupees, and every other paper fiction. That all earn negative returns year after year after year after year after year. USD holders are losing purchasing power several percent a year and have for decades. This 1% inflation #$%$ is bogus govt claptrap. Look at your health care costs. Take a long hard look. Do you send a child to a private school? Do you eat? It doesn't matter if you don't eat out, eating IN is expensive now if you don't want processed GMO additive laden poison. Do you think gas is cheap? How about your gas/power? Is that increasing 1%? Insurance? How about transportation? I just saw CHEVY MALIBUS advertised for 20 GRAND. Folks, and sorry if I offend any Chevy Malibu fans, maybe they were good in the 1970s, but Chevy Malibus are pieces of Govt Motors trash. GM makes chuds. A piece of dookie car costs 20 grand now?
Funny, but the ONLY things that cost a lot less than they did 2,5, or 10 years ago is gold mining stocks. Silver is over 60% off its high. Gold is $700 less than it high. If you had a million bucks you could buy and take delivery of well over 50000 ounces of silver at this price. Folks I stopped buying silver when it broke out in 2011, but I have been back to accumulating here at the 20 mark. People accumulating silver will do better than people mindlessly contributing to IRAs and 401ks and paying top dollar for all equities. Look at Facebook its a $120B market cap with $7B sales and $1B earnings. PE = 120. I like PMs. Sorry. Real money. Not going to go away.