ProShares Ultra Silver

On November 14, 2018, Pan American Silver announced that it was buying Tahoe Resources in a $1.07 billion cash and stock deal.

While the SPDR Gold Trust (GLD) has fallen 4.8% year-to-date, the iShares Silver Trust (SLV) has fallen 14.6% in the same period.

Of all the major silver stocks, Tahoe Resources (TAHO) is trading at the lowest forward EV-to-EBITDA (enterprise value-to-EBITDA) multiple of 3.3x.

While gold miners have been out of favor for a long time, that may be about to change. As uncertainty in the market is increasing, gold prices are poised to rise.

Of all the stocks we’ve covered in this series, Tahoe Resources (TAHO) is trading at the lowest enterprise-value-to-forward-EBITDA multiple of 3.5x.

On October 5, Gold Fields, Agnico-Eagle, Cia De Minas Buenaventura, and AngloGold had implied volatility readings of 40.4%, 33.6%, 35.3%, and 40.9%, respectively.

On September 29, Alamos, First Majestic Silver, Franco-Nevada, and Pan American had call implied volatilities of 46.9%, 54.6%, 25.5%, and 34%, respectively.

Most mining shares witnessed an up day on Monday, September 25, 2017, as precious metals increased over the ongoing global tensions.

On September 18, gold fell 1.1% and closed at $1,306.90 per ounce. Of the precious metals, silver fell 3.1% and closed at $17.10 per ounce.

Among the four miners we’re looking at, Gold Fields has the highest correlation to gold on a YTD basis, while Sibanye Gold has the lowest correlation to gold.

Miners’ correlation with gold In this part, we’ll look at mining stocks’ correlation with precious metals by comparing their price movement. Specifically, we’ll analyze Alamos Gold (AGI), First Majestic Silver (AG), B2Gold (BTG), and Royal Gold (RGLD). The mining stocks have recovered in the past few weeks. The Direxion Daily Gold Miners Bull 3x Shares […]

Silver Wheaton has a three-year correlation of ~0.70 with gold and a year-to-date correlation of ~0.80.

Silver companies try to maintain an optimal level of debt-to-equity to lower their costs of capital and maintain an optimum level of risk-reward for shareholders.

Yamana Gold’s (AUY) net-debt-to-forward EBITDA ratio is 2.8x, which is higher than its peers’ ratios.

Market sentiment for Coeur Mining Coeur Mining (CDE) is a high-cost producer compared with peers (RING) (SIL). While it has initiated several measures to bring down its costs in the last few years, they remain high. Higher costs make CDE more leveraged to gold and silver prices than other low-cost producers such as Barrick Gold (ABX) […]

Mining stocks have bounced back from the choppy markets we’ve seen over the past month. On July 20, most mining stocks saw upward movements in their prices.

In this article, we’ll look at some important technical indicators for Coeur Mining (CDE), Barrick Gold (ABX), Buenaventura (BVN), and AngloGold Ashanti (AU).

Mining stocks have bounced back from the choppy markets seen over the past week.

On July 13, 2017, Franco Nevada, Randgold Resources, Yamana Gold, and Cia De Minas had implied volatilities of 28%, 28.4%, 55.4%, and 38.6%, respectively.

Over the past three years, Yamana, Sibanye, and Gold Fields have seen upward correlations in their correlation trends with gold.

Gold tumbled to an eight-week low on July 3, 2017. Gold futures for August delivery fell almost 1.9% to settle at $1,219.2 per ounce.

When we try to interpret the performance of precious metals, it’s crucial to study the impact of metal price variations on mining shares.

The rise and fall of precious metals also significantly impact mining-based leveraged funds like the Direxion Daily Gold Miners (NUGT) and Proshares Ultra Silver (AGQ).

On June 6, the implied volatilities of Alamos Gold, Primero Mining, Silver Wheaton, and Franco-Nevada were 51.1%, 90.6%, 30.8%, and 24.5%, respectively.

Coeur Mining (CDE) has a net debt-to-forward-EBITDA ratio of 0.40x, which seems comfortable. Hecla Mining’s (HL) ratio is slightly higher at 1.3x.

Fears surrounding a potential upcoming interest rate hike took over precious metals recently, and they fell at the beginning of May 2017.

The Direxion Daily Gold Miners (NUGT) and the ProShares Ultra Silver (AGQ), both leveraged mining funds, both have recovered and jumped 19.4% and 24.9%, respectively, on a five-day trailing basis.

Precious metals miners with substantial exposure to silver are usually classified as silver miners.

The RSI levels of our four select mining giants have all increased lately due to their higher stock prices.

Newmont Mining, Silver Wheaton, Randgold, and Yamana have RSI levels of 45.5, 37.1, 41.2, and 43.0, respectively.

Among the leveraged mining funds, the Direxion Daily Gold Miners ETF (NUGT) and the Proshares Ultra Silver ETF (AGQ) have seen considerable losses over the past month.

Mining stocks and precious metals As global tumult grips markets and investors are turning to mining stocks as safe havens, it’s crucial to understand which stocks are closely tied to precious metals. Stocks with a higher correlation with precious metals will likely be impacted more by global indicators that influence precious metals. The Direxion Daily […]

Leveraged mining funds including the Direxion Daily Gold Miners (NUGT) and the Proshares Ultra Silver (AGQ) saw big jumps in early 2017 due to the revival in precious metals.

As of April 6, 2017, the volatilities of New Gold (NGD), Agnico Eagle (AEM), Silver Wheaton (SLW), and Franco-Nevada (FNV) were 55.5%, 36.6%, 34%, and 30.1%, respectively.

Leveraged mining funds like the Direxion Daily Gold Miners (NUGT) and the ProShares Ultra Silver (AGQ) have seen significant correlations with their respective precious metals.

As of April 4, 2017, the volatilities of New Gold (NGD), Agnico Eagle Mines (AEM), Silver Wheaton (SLW), and Randgold Resources (GOLD) were 51.5%, 35.4%, 61.7%, and 54.1%, respectively.

Now that mining companies have begun witnessing revivals from their losses earlier this year, it becomes crucial to examine the volatility figures and RSI.

Leveraged mining funds such as the Direxion Daily Junior 3X Gold Miners (JNUG) and the ProShares Ultra Gold (AGQ) also have significant correlations with their respective precious metals.

NUGT and AGQ have seen YTD rises of 18.6% and 27.5%, respectively. But the volatility of such mining funds can be higher than that of precious metals.

Commodity exposure In the previous part of this series, we looked at miners’ geographic exposure, which is important to consider due to the geopolitical risks some jurisdictions face. It’s equally important to consider their revenue compositions in terms of commodity exposure. ­ Contribution from silver Silver companies are rarely pure-play miners. For investors considering silver […]

Precious metal stocks with higher correlations to their respective metals are often more affected by global indicators.

Mining funds such as the iShares MSCI Global Gold Min (RING) and the leveraged ProShares Ultra Gold (AGQ) have also seen significant correlations with their respective precious metals.

Silver miners (SIL) are usually a levered play on gold. Notably, silver has outperformed gold year-to-date.

Mining companies’ volatilities are significant to the buying process. The mining shares we’ve selected in this article are Kinross Gold, Eldorado Gold, IAMGOLD, and Harmony Gold.

As of March 15, the volatilities of Silver Wheaton, AngloGold Ashanti, Hecla Mining, and Kinross Gold were 38.2%, 36.2%, 29.3%, and 40.6%, respectively.

Monitoring the implied volatilities of large mining stocks is important. We should also watch their RSI (relative strength index) levels, particularly in the wake of changing precious metals prices.

Precious metal mining stocks closely track precious metals. Precious metal leveraged funds have fallen recently due to the slump in precious metals.

Precious metal mining stocks are known to closely track the performances of precious metals.

Agnico-Eagle Mines has the highest correlation to gold year-to-date. Primero Mining is the least correlated to gold.

Mining companies with high correlations to gold include Randgold Resources (GOLD), Yamana Gold (AUY), Pan American Silver (PAAS), and Coeur Mining (CDE).

Sibanye Gold has the closest correlation to gold on a YTD basis among the four miners under review.

Precious metals prices have risen from the ten-month lows they saw in December 2016. As a result, most mining stocks have also risen substantially.

Yamana Gold has the closest correlation to gold on a YTD basis among the four miners under review.

Call implied volatility takes into account the changes in an asset’s price due to variations in the price of its call option.

Many of the recent changes in precious metals have been determined by changes in the interest rates offered on US Treasuries.

It’s important to monitor the implied volatilities and RSI levels of large mining stocks, particularly in the wake of the changes in precious metal prices.

The trailing 30-day returns of most mining companies are positive due to precious metals’ diminishing safe-haven appeal.

Precious metal mining stocks are known to closely track the performance of their respective precious metals. Mining stocks often show more volatility than metals.

Precious metal prices have been falling since Trump won the US Presidential election on November 8, 2016. Mining stocks quickly followed suit.

Sibanye Gold, Gold Fields, Agnico-Eagle Mines, and Pan American Silver had RSI levels of 51.4, 54.6, 59.4, and 58.8, respectively.

Precious metal prices have been falling since Donald Trump won the US Presidential election on November 8, 2016, and mining stocks followed suit.

Mining companies that have high correlations with gold include Agnico Eagle Mines (AEM), Alacer Gold (ASR), Alamos Gold (AGI), and AngloGold Ashanti (AU).

Precious-metal-based funds such as the ProShares Ultra Silver (AGQ) and the Direxion Daily Gold Miners (NUGT) have seen a revival in their price during the last month.

In this part, we’ll look at the implied volatilities of large mining stocks and their RSI levels in the wake of precious metal prices.

Among the other precious metals trading on the COMEX, silver shares for March expiration maintained an almost flat end to the day on January 11, 2017.

Mining companies that have high correlations to gold include Royal Gold (RGLD), Goldcorp (GG), New Gold (NGD), and Newmont Mining (NEM).

For investors considering silver stocks due to their leveraged exposure to silver prices, the higher the company’s revenues derived from silver, the better.

Precious metal prices have been falling since Donald Trump won the US presidential election on November 8, 2016. As a result, mining stocks have also been falling.

Precious metals had a great start to 2016. Franco-Nevada’s correlation rose from an ~0.59 three-year correlation to an ~0.63 one-year correlation.

Mining companies that have high correlations with gold include Buenaventura (BVN), AngloGold Ashanti (AU), Hecla Mining (HL), and Kinross Gold (KGC).

The New Home Sales figure stood at 592,000, higher than the expectation of 575,000. The higher sales were likely due to the better forecast for the economy.

Precious metals had a great start to 2016, but they’ve been falling since Donald Trump won the US presidential election. As a result, mining stocks have also been falling.

The substantial returns of most mining companies have been due to safe-haven bids that boosted gold and other precious metals.

Mining stocks and gold Although precious metals were doing well at the beginning of 2016, it’s important to know which mining stocks overperformed and underperformed precious metals. Precious metal prices have been falling since Donald Trump won the US presidential election on November 8, 2016. As a result, mining stocks have also been falling. Mining […]

Silver miners have shown a significant correlation to gold prices, at 0.84 from the start of 2013 to December 14, 2016.

Mining companies that have high correlations with gold include Cia de Minas Buenaventura (BVN), AngloGold Ashanti (AU), Hecla Mining (HL), and Kinross Gold (KGC).

Silver-based mining funds like the Global X Silver Miners Fund (SIL) have been negatively impacted by the drop in silver prices.

Precious metals were doing well at the beginning of 2016. It’s important to know which mining stocks overperformed and which underperformed precious metals.

Kinross and Hecla saw their correlations with gold rise. Kinross’s correlation rose from an ~0.55 three-year correlation to an ~0.61 one-year correlation.

Leveraged mining funds such as the Direxion Daily Junior Gold Miners Bull 3X ETF (JNUG) and the ProShares Ultra Silver (AGQ) have fallen due to the decline in precious metals.

Mining companies that have high correlations with gold include Cia De Minas Buenaventura (BVN), AngloGold Ashanti (AU), Hecla Mining (HL), and Kinross Gold (KGC).

Precious metal prices have been falling since Donald Trump won the US presidential election on November 8, 2016. As a result, mining stocks have also been falling.

Randgold is the most correlated with gold on a YTD basis among the four stocks under review. Primero Mining is the least correlated with gold.

Mining companies that have high correlations with gold include Sibanye Gold (SBGL), Gold Fields (GFI), Silver Wheaton (SLW), and Franco-Nevada (FNV).

Randgold is the most correlated with gold on a YTD basis among our four mining companies. Primero Mining is the least correlated with gold, mainly due to its YTD losses.

Precious metals started 2016 with good news. But which mining stocks have overperformed and which are underperforming precious metals?

Precious metal prices have been falling since Donald Trump won the US presidential election. As a result, mining stocks have also been falling.

Mining companies that have high correlations with gold include Alamos Gold (AGI), First Majestic Silver (AG), B2Gold (BTG), and Royal Gold (RGLD).

Mining companies and gold Precious metals saw some good news as 2016 started. However, it’s important to know which mining stocks are overperforming and which are underperforming precious metals. Lately, precious metal prices have been falling slowly. As a result, mining stocks have also fallen. Mining companies that have a high correlation with gold include Yamana […]

Mining companies that have high correlations with gold include Sibanye Gold (SBGL), Gold Fields (GFI), Silver Wheaton (SLW), and Franco-Nevada (FNV).

Precious metals saw some good news as 2016 started. However, it’s important to know which mining stocks are overperforming and which are underperforming precious metals.

Precious metals saw some good news at the beginning of 2016. However, lately, precious metals prices have been falling slowly. As a result, mining stocks have also fallen.

The substantial returns for most mining companies have been due to safe-haven bids that boosted gold and other precious metals.

Mining companies that have high correlations with gold include Alamos Gold (AGI), First Majestic Silver (AG), B2Gold (BTG), and Royal Gold (RGLD).

About 61.0% of the time, Kinross Gold has moved in the same direction as gold in the past year.

Mining companies that have high correlations with gold include Primero Mining (PPP), Silver Wheaton (SLW), Franco-Nevada (FNV), and RandGold Resources (GOLD). These companies have risen significantly year-to-date.

During times of global and economic turbulence, volatility is higher than during a stagnant economy.

Robert McEwen foresees that gold will increase to about 44% by the end of 2016 and confirms a possible price range of $1,700–$1,900 per ounce.

The current weakness in the rand made it fall to all-time lows against the US dollar in early 2016 but has helped mining companies.

Gold’s price rally on September 6, 2016, was the biggest increase in the precious metal since June. July and August were disappointing for precious metals.