If we break through the current low, $16 or less could be seen. I'll just slowly average down and keep the score close until the next bounce comes along.
Its hard to believe there is investor demand for more of these shares. Its hard enough for me to buy a tiny flyer on GG at 22 1/2 and watch it melt down, but investors are insanely chasing risk with NUGT. If gold drops to $1,000 most gold miners start to look next to worthless unless or until gold prices start rising significantly on a sustained basis. GG is a very high quality gold miner, but this industry is an absolute mess. I have always preferred SLV and PSLV as unleveraged secure bullion. Bird in the hand is worth three in the bush when it comes to gold and silver in this bear market.
other countries can't afford a collapse of the dollar. that's basically why it won't happen or it will but at such a slow pace it doesn't matter. other countries often like to devalue their currency against the US dollar. Even though we print a lot more of it, we still won't see it collapse against other currencies.
as we break the last low of $22+ to set a new lower low (bear market confirmation) and who knows where the next low will be before the next bounce higher. GDX and NUGT are almost in a funny way attracting more investor interest even though they couldn't have done much worse this past year.
at $22+ and now its a race for the bottom. GLD and SLV are close to breaking support, and if they do miners will likely see sharp further declines. Tax loss selling can also create another headwind. I'm glad I only bought a tiny stake at 22 1/2 for entertainment.. We could get crushed again towards $15 per the chart. GDX is a GLD on steroids. If gold drops another 17%, the miners will all get slammed as in big losses for everyone until gold prices rise.
but I'll consider AGQ if we slide too much further. Leveraged silver is to be avoided unless extreme conditions warrant a second look. We're just looking to re-test the lows right now, but we'll probably see lower lows and extreme conditions develop before this slide ends. Tax-loss selling?
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.
or is $15 coming? I hate to say this, but I think gold miners probably have further to drop before we see another good bounce. I own a tiny stake at 22 1/2 for entertainment purposes. GG is the best of a sorry bunch!
GG has a good chance to survive and eventually thrive, with good assets and a great balance sheet. A lot of miners are in lousy shape, though. If gold keeps sliding, we'll see a lot more blood in the streets before this bear is over. I only have the courage to buy GG in this lousy industry. The miners have done a terrible job of controlling expenses and are now panicky with gold at $1,250 compared with around $250 in 2001. Its hard to see how they could have screwed up so badly! Bullion funds (GLD and SLV) seem a lot safer than this sorry lot of operators. A small speculative position is all I'll do for now. Not much courage!
The miners are getting creamed. However, GG has the best assets and balance sheet of the major miners. Its a survivor, if there is one.
I'm buying small blocks of SLV right now (20/19/18/17/16) but I'll start spiking the punch bowl with additional AGQ shares when we go to 16/15/14. AGQ and USLV can really pop on rallies but right now it looks like we'll drift lower for a while. I thought about AGQ last time we bottomed around $18 for SLV but this time I'll probably add some levered shares.
has left the miners with profitless prosperity. Now they're all in a mad dash to re-structure and reduce costs. When just about all your miners lose money at $20 an ounce, silver bullion starts looking good around $20. Should we see another lower low in this bear market, the miners start bleeding badly. Sadly for the miners, I think gold and silver look set to re-test their lows soon. Year-end tax loss selling, anyone?
with a 4 1/2% secure dividend with this wide-moat company. Russia and Belarus won't stay irrational for too long imo. After a while, the low prices will just mean low profits for everyone. Uralkali is being sold so the 'game plan' can change also.
Over-sold with new low still likely. GDX hit a new five year low today. Down, then up, for a bounce reversal on GLD. We'll see if it lasts and how long, which is doubtful.
Always dicey when its a bear market that keeps seeing lower lows. Miners have really screwed up with exploding expenses. Now with gold much higher than ten years ago, the gold miners are bleeding losses. Its really sad. Barrick is an embarrassment. This is a rare case where I'm tempted to buy GG but not the industry etf. Just too many screw ups in this industry.
After rallying from 22+ to 31 GDX has broken down and is in the 21s pre-market. Precious metals ain't so precious right now. Miners are worse off than GLD and SLV bullion funds, but everything is experiencing the push lower.
GLD has looked weak and ready to re-test its low for a while now. We'll see what happens in the morning! GDX looks ready to hit another 5-year low, and any further weakness in gold guarantees it hitting a new low. Silver is also ready to re-test.