I guess a buck move upward means they liked the earnings. It didn't hurt that silver went up today as well.
cost per oz is coming down, so margins will increase as prices go up, and if prices go down, they are still ok.
Seems like something is always bring down the bottom earnings, this time it was the settlement of its ligation.
That is today's society, read the headline and move on, don't dig deep to see any details.
Tell that to depositors in Europe who will be on the hook if their bank goes belly up. Both big drops in gold have come on the news of banks using depositors money to bail them out. Drive the price down, so they can move their money into gold, and out of the banks. Then watch as the banks fails, and no one is left to support it.
Tied to this is the bailout of Cyprus banks, and then yesterday the European Central banks tying depositors money to bailing out the bank if it is going down. The powers to be wanted the price of gold low to buy, as why put your money in bank and risk getting less back and bailing out the bank to boot.
We may see gold lower, but we are close to the bottom imho.
Who is going to want to keep more 100K euros in a European bank, and then be on the hook for bailing out the collapse of the bank. I think this will bode well for gold in the long run.
Looks like someone sold 11,800 contracts at 15 level . So either they are confident that it won't get there, or they want to buy that many shares at just under 15 after the premium.
What do you think the Chinese will do if their banks start running out of money? My guess, is that invest it in gold, rather than put in a bank where they may get nothing back.
Did you see the large order at the end of the day? Over 300k, price went from .58 to over .61 to fill it. Someone wanted a large position.
The demand for paper gold may have dropped, but try buying some of the real stuff, and you will pay upwards to a 5 % premium as a shortage of the real stuff exists. Want some fake paper derivative, and you can get all you want.
Yeah,a PE of 22 is way too high? What about the PE of Netflix, somewhere around 500? Fundamentals like PE don't matter to investors anymore.