Could Royalty and Streaming Companies Stay Strong in 2018?
Royalty and streaming companies Royalty and streaming companies’ business model differs greatly from that of other precious metal miners (RING), mainly because royalty and streaming companies do not own mines. These companies make upfront payments to gain a right to a fixed percentage of future silver or gold mine production. Additional payments are then made […]
Chinese, Indian Demand for Gold Is Rising
India and China, the two largest consumers of gold, make up about 50% of gold’s global demand. Gold is treated more as a commodity in these two countries.
The Correlations of Miners So Far in 2018
Mining stocks tend to move in accordance with gold prices.
Here’s What’s Driving Analyst Estimates for Franco-Nevada
Analysts are calling for average revenues of $678.5 million for 2017 for Franco-Nevada (FNV).
Gold Recovered as Markets Took a Breather following the Election
After surging to multimonth highs, gold slowly retreated to its original level. Gold fell from its overnight high, and equity markets rebounded from their fall.
How Are Precious Metal Miners Doing in September?
Most mining stocks have risen over the past month due to a substantial rebound in the prices of precious metals.
Why Mining Company Stocks Are Rising Year-to-Date
Mining companies saw massive YTD rises in 2016 despite their poor performances in the last quarter. GDX saw a YTD rise of 21.4%.
Why Precious Metals Fell on Monday, September 18
Precious metals saw a down day on Monday, September 18. Gold, silver, and platinum fell 1.1%, 3.1%, and 1.1%, respectively, on the day.
Gold Performance Versus Other Investments in 1H17
Factors impacting gold in 1H17 are a weaker US dollar, geopolitical uncertainties, higher interest rates, and expectations for Trump’s agenda.
Mining Stocks: How’s the Correlation Trending?
Mining stocks with a higher correlation to precious metals will likely be impacted more by global indicators that influence precious metals.
Gold Prices at a 4-Month Low—Is More Downside Ahead?
Gold prices touched an almost four-month low in early December. After breaching $1,300 per ounce in September due to geopolitical tensions, gold prices have mostly been on a downtrend.
The Federal Reserve Minutes Pushed Gold Higher
As the Federal Reserve released minutes from its December meeting, gold prices jumped higher.
How the Surging US Dollar Has Kept Precious Metals in Its Grip
Gold prices once again retreated on Friday, November 25, by $10.3 to close at $1,179 an ounce—the lowest level that gold has seen since February.
A Look at the Technical Indicators for Major Miners
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.
Royalty and Streaming Companies Have the Least Correlation to Gold
The business model of royalty/streaming companies is quite different from that of other precious metal miners.
Gold in 2017: Which 5 Miners Have Made Money?
The performance of gold and silver in 2017 is weaker than most other industrial metals. There are many factors that explain the weaker performance of precious metals.
Analyzing Newcrest Mining’s Rising Costs and Falling Gold Prices
Newcrest Mining is based in Australia. It’s engaged in the exploration, mining, and sale of gold and copper. It produced about 2,396,000 ounces of gold in 2014.
Who’s Changing Minds on Royal Gold?
RGLD is being covered by 13 Wall Street analysts right now, of which 54% recommend a “buy” for the stock, while 46% recommend a “hold.”
Which Silver Miners Can Provide Free Cash Flow Upside Going Forward?
Free cash flow The generation of FCF (free cash flow) is important for precious metal mining companies (RING) (SIL). It helps them invest in projects that can drive long-term value, optimize their financial leverage, and provide shareholder returns. Silver mining companies are constantly trying to reduce their costs and capital expenditures in order to generate FCF. Hecla […]
Why Did Gold Prices and Gold Mining Stock Performances Diverge in 1H17?
Gold miners in 2017 seem to be driven more by company-specific factors than by the direction of gold prices.
Precious Metals: Royalty, Streaming Stocks Are Underperforming
Among the precious metals sub-groups, royalty and streaming companies have substantially underperformed the other miners.
Why Valuation Multiples for Royalty and Streaming Companies Have Risen in 2017
Royalty and streaming mining companies (RING) (SIL) have business models that are considered quite conservative because they don’t own mines.
Royalty and Streaming Companies May Underperform as Gold Rises
The business models of royalty and streaming companies is quite different from those of other precious metals miners. Royalty companies don’t own mines.
An Analysis of OPGSX’s Investment Methodology
The Oppenheimer Gold & Special Minerals Fund – Class A (OPGSX) takes an alternative approach to investing in precious metals and related securities.
Why Royalty and Streaming Companies Outperformed Peers in 2017
Royalty and streaming companies are quite different than other precious metal miners in terms of business model.
Royalty and Streaming Stocks: What Are the Wall Street Favorites?
Among the precious metals sub-groups, royalty and streaming companies have substantially underperformed the other miners. Why is that?
Strong US Dollar Is Pushing Gold Prices Lower
COMEX-traded gold futures contracts for June delivery settled at $1,186.50 per ounce on Wednesday, May 27, 2015. Gold prices declined for the fourth session.
Which Royalty and Streaming Companies Could Be Rerated in 2018?
Among the four major streaming companies we’ll discuss in this part of our series, Franco-Nevada (FNV) has the highest forward EV-to-EBITDA multiple of 22.8x.
Can the Divergence Between Gold Prices and Gold Miners Continue in 2018?
Gold prices (GLD) rose ~13% in 2017. On top of that, January 2018 saw a ~3% rise in prices.
Can Federal Funds Futures Hint at the Direction of Gold Prices?
Federal funds futures, which are used to hedge the interest rate risk, are factoring in a maximum of one interest rate hike by the end of 2016.
Exposure to OPGSX, the Precious Metal Fund: Good or Bad?
The Oppenheimer Gold & Special Minerals Fund – Class A (OPGSX) seeks capital appreciation through exposure to gold-related stocks.
SGGDX’s 2015 Performance: A Peer Comparison
The First Eagle Gold Fund Class A (SGGDX) is an alternative mutual fund that invests more than 80% of its net assets in gold and gold-related companies.
Tracking Precious Metals’ Cross-Commodity Rates
The turbulence in worldwide markets has helped precious metals, especially gold and silver, to reach new highs that we haven’t seen in the last few months.
Could Gold be Set for a Big Move in 2018?
Gold started 2018 on a strong note, in line with the new-year price rallies it has seen over the last few years.
Why Royalty and Streaming Companies Have Lower Correlations to Gold Prices
Royalty and streaming companies don’t own mines. They make an upfront payment in return for a purchase of a fixed percentage.
Precious Metal Miners Worth Considering Based on Valuations
Gold prices have been on a roller coaster ride, given the on and off situation with North Korea. A missile test and gold’s safe-haven appeal have propelled prices higher, and then they’ve fallen back again.
Analyzing Miners’ Core Technicals in September
As mining companies are known to closely track precious metals, in this article, we’ll look at how a few miners have moved over the past month as well as their technical indicators.
Gold Rose despite the Strengthening US Dollar
The US dollar and precious metals are usually inversely related to each other.
Where Are Gold Charts Pointing?
Gold has been falling since touching its one-and-a-half month peak last week after Republican representative Donald Trump was elected president of the United States.
What Should Gold Investors Do after the US Election Surprise?
Until the market settles down and the policies of the new administration are understood, uncertainty is likely to prevail in the market. This, in turn, should support precious metals such as gold, silver, platinum, and palladium.
As US Job Growth Slows, Gold Begins Another Climb
The US added 138,000 jobs in May 2017, after adding 174,000 jobs in April (revised downward from 211,000 previously).
The Correlation between Gold and Oil
Oil is widely used in mining exploration, and a surge in oil prices may squeeze miners’ margins, leading to a fall in their share prices.
How to Read Uptrends and Downtrends in Correlations
Investors in mining shares study upward and downward trends in correlation when they consider buying a particular share.
Buffett versus Dalio on Gold: Whose Advice Should You Take?
When it comes to investing in stocks, Berkshire Hathway’s (BRK.A) chair, Warren Buffett, and Bridgewater’s founder, Ray Dalio, have similar advice.
Gauging Royalty and Streaming Companies’ Upside Potentials
Royalty and streaming mining companies’ valuation multiples (GOAU) (NUGT) are usually higher than those of their mining peers.
Why Are Analysts Raising Their Gold Price Estimates for 2019?
On January 21, CIBC raised its target price for gold from $1,300 per ounce to $1,350 per ounce for 2019.
Why Ray Dalio Recommends Holding 5%–10% in Gold
Dalio’s Bridgewater Associates built its position in gold ETFs mainly after the second quarter of 2017.
Are Royalty and Streaming Stocks a Safe Bet in 2018 and Beyond?
Royalty and streaming mining companies’ (GOAU) (SIL) multiples are usually higher than those of their mining peers.
Which Gold Miners Look Promising as Gold Rebounds?
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.
Could Unprecedented Short Interest in Gold Mean a Bullish Future?
According to the COT report for the week ended August 10, money managers were net short on gold for the eighth straight week.
Why Speculative Money Positioning Hints at a Gold Rally
According to the COT report for the week ended August 3, money managers were net short on gold for the seventh straight week.
Does Speculative Positioning Imply that Gold’s Bottom Is Near?
According to the COT report for the week ended June 26, 2018, money managers were barely net long on gold with just over 4,000 net speculative long contracts.
Why the US Dollar Is Gaining Strength and the Impact on Gold
The primary reason for the fall in precious metals on Monday was the US dollar, which strengthened against the basket of other world currencies.
How Are Mining Stocks Reacting to the Slump in Gold?
The Global X Silver Miners ETF (SIL) and the VanEck Vectors Gold Miners ETF (GDX) have fallen about 7.6% and 1.8%, respectively, during the last month.
How Miners’ Correlations Are Moving in Accordance with Gold
In this article, we’ll focus on the correlations of selected miners with gold.
US Dollar at a 5-Month High, Gold at 5-Month Low
Besides overall market volatility, the most important determinant of precious metal prices, especially gold’s (IAU) (SLV), is the US dollar.
These Mining Stocks Are Following Gold Closely
Over the past three years, AEM, FNV, and ABX have seen a declining correlation to gold.
How the Correlation of Miners Moved amid Choppy Markets
Over the past three years, PAAS, AUY, and GOLD have seen declining correlations with gold, while FNV saw a mixed correlation to gold.
US Yields Peak and Gold Slumps. Are the Dots Connecting?
US ten-year Treasury note yields (IEF) hit a high mark of approximately 3.1% today—a record since July 2011.
How the Gold-Silver Ratio Is Moving
When analyzing precious metals and precious metal mining companies, it’s essential to analyze the relationship between precious metals.
How Is Platinum Performing in 2018 So Far?
In this part of the series, we’ll focus on the gold-platinum spread, which compares the price performances of the two metals.
Treasury Yields Hit 3% and Gold Fell: Coincidence?
In addition to the US dollar playing on precious metals, US interest rates and the decisions by the Federal Reserve have also historically had a substantial impact on these safe havens.
How Have Miners’ Correlations with Gold Been Moving in 2018?
Among these four miners, Newmont has shown the highest correlation to gold, while Franco Nevada has seen the lowest correlation on a YTD (year-to-date) basis.
Miners’ Correlation with Gold in April
In this part of our series, we’ll look at the correlation between gold and four mining stocks: Franco-Nevada (FNV), Coeur Mining (CDE), Kinross Gold (KGC), and Eldorado Gold (EGO).
Factors that Could Pressure the US Dollar and Benefit Gold
Goldcorp (GG), Randgold Resources (GOLD), Hecla Mining (HL), and Franco-Nevada (FNV) are trading at $13.30, $101.70, $3.55, and $68.16, respectively.
How Do Miners’ Technicals Look?
It was widely expected that precious metals and miners would react negatively after the FOMC (Federal Open Market Committee) meeting.
A Look at Miners’ Technical Details
On Wednesday, March 14, 2018, precious metals fell, but miners had a mix of ups and downs.
Miners’ Volatility Indicators this Month
Precious metal miners had a reasonably good start to 2018. Overall, on a YTD (year-to-date) basis, precious metals’ reactions have been mixed.
Economic Strength Isn’t Boosting the US Dollar Rise—How It Affects Gold
The US Dollar Index averaged 96.6 in 2017. A Reuters poll estimates that the US Dollar Index could end this year at ~88.7.
How Miners’ Correlation Is Moving in 2018 so Far
Precious metal mining stocks tend to take their cues from gold prices. Gold is the most crucial of the four precious metals, and its direction becomes the direction for the other three metals most of the time.
Gold’s Role as a Strategic Asset
Despite the impressive rise of bitcoin in 2017, its increased price volatility and complex mining process have limited its demand.
How Is the Volatility Index Impacting Gold?
Another critical factor that has been affecting the price movement of precious metals is overall market volatility.
The Dollar Gains, Precious Metals Decline
Gold and silver spot prices fell 0.40% and 1.2%, respectively, on Friday, February 16.
Why GLD and GDX Have Diverged This Year
GDX and GLD The VanEck Vectors Gold Miners ETF (GDX) tracks the performance of the NYSE (New York Stock Exchange) ARCA Gold Miners Index. Its major holdings are senior and intermediate precious metal miners listed in the United States and Canada. Currently, Newmont Mining (NEM), Barrick Gold (ABX), and Newcrest Mining are the fund’s top […]
What’s Keeping a Lid on Precious Metal Prices?
On Friday, February 9, gold prices saw some sign of revival as equities continued tumbling and haven bids pulled precious metals higher.
Can the US Dollar Rally Further to the Detriment of Gold Prices?
After disappointing the markets for a long time, the US dollar (UUP) has finally rallied. The US non-farm payrolls data released on February 2, 2018, were better than expected.
The Positive and Negative Correlation to Gold
The iShares MSCI Global Gold Mining ETF (RING) and the VanEck Vectors Junior Gold Miners ETF (GDXJ) have risen 5.0% and 1.1%, respectively, during the last one-month period.
Gold’s Outlook for 2018
Looking ahead for 2018, industry analysts stated in a Bloomberg article that they expect gold to perform better early in the year led, by the “January effect.”
Could Traders’ Long Positions on Gold Suggest a Pullback?
Commitment of Traders report The CFTC (Commodity Futures Trading Commission) releases the Commitment of Traders (or COT) report every Friday. It presents a breakdown of the open interest positions of all major contracts in the futures market up until the Tuesday prior. It has four main categories of traders: producers swap dealers money managers other reportables […]
Us Dollar Feels Sustained Pressure: Good News for Gold
Starting 2018 on the wrong foot After declining by ~10% in 2017, the US dollar (UUP) has extended its fall in 2018. It has fallen by ~2% against a basket of currencies so far, trading close to three-year lows. There are many potential reasons for the slump in the dollar. Some of them are related to […]
Is Gold Keeping Tabs on the US Interest Rate?
As we know, precious metals are closely tied to movements in US interest rates. Bonds and equities are both yield-bearing assets, so a rise in yields often causes a slump in demand for assets such as gold and silver.
Interest Rate versus Gold: Interest Rate Wins Again
Gold is a non-yield bearing asset that reacts negatively to rises in the interest rate.
Analyzing the Correlation between Miners and Gold in January
Most mining stocks have risen over the past one month due to the revival in gold prices.
Mining Stocks Follow Precious Metals: Technical Insights
New Gold, Agnico-Eagle Mines, Franco-Nevada, and Cia de Minas Buenaventura have call-implied volatilities of 45.2%, 24.4%, 21.7%, and 31.2%, respectively.
What Mining Stock Technicals Tell Us about Recent Movements
Precious metal mining companies have witnessed a rebound in their prices alongside precious metals.
Why Analysts Are Positive about Royal Gold’s Future
Due to its solid performance YTD (year-to-date) and bright outlook, Royal Gold (RGLD) is attracting a lot of interest from the analyst community.
Miners: Analyzing Core Indicators for Investors
A brief analysis of mining stocks is crucial when investors are parking their money in the precious metals market, specifically in mining companies.
A Correlational Analysis of Miners and Gold in December 2017
Miners’ correlation with gold Gold is regarded as the most important precious metal, and most miners are known to follow its price trends. In this part of the series, we’ll look at Wheaton Precious Metals (SLW), Franco-Nevada (FNV), Coeur Mining (CDE), and Barrick Gold (ABX). The prices of mining-based funds are also closely related to those of […]
Fed Hikes Interest Rate, Precious Metals Rebound: What’s Ahead?
Precious metals rebounded after the Fed increased the interest rate on December 13.
How Eager Are Precious Metals to Hear the Fed’s Decision?
Gold, silver, and platinum all had a down day on Tuesday, December 13, mainly due to speculations over the Federal Reserve’s pending interest rate decision.
Waiting for the Fed’s Decision: The Reaction of Precious Metals
Although the US dollar has been the most important element contributing to changes in precious metals, the upcoming December meeting of the Federal Reserve has taken all of investors’ attention.
Why Analysts Are Turning Bearish on Gold in 2018
J.P. Morgan sees gold prices averaging $1,295 per ounce in 2018, with second-half prices averaging $1,340 per ounce.
What Are Miners’ Correlation Trends?
Gold is the most dominant among the four precious metals. It’s important that investors analyze how miners are moving compared to precious metals.
Inside the Relative Valuations of Key Gold Miners Today
While geopolitical tensions, low US inflation, and uncertain policy reforms have been supporting gold, the other key factors have been working against it.
Analyzing Trends in Mining Stocks’ Correlation
Gold remains the most dominant among the four precious metals. It’s crucial that investors analyze how the miners are moving versus precious metals.
Comparing Miners’ Correlation with Gold
Correlation analysis Mining stocks’ performance usually depends on precious metal prices. Correlation analysis can give investors some perspective on how mining stocks relate to precious metals, especially gold. In this part of our series, we’ll look at four miners—Royal Gold (RGLD), Goldcorp (GG), Franco-Nevada (FNV), and Randgold Resources (GOLD)—and their correlation with gold. On Monday, the ETFS Physical […]
Gauging the Direction of Mining Stocks
As we analyze the performance of the precious metals market, it’s crucial to look at the core mining stocks and also their technical details.
Analyzing Gold’s Market Performance
Besides the impact of interest rates, there are also other global indicators that could play on precious metals—the most important being the US dollar.
Behind the Technical Details of Key Mining Stocks Today
The Sprott Gold Miners (SGDM) and Global X Silver Miners (SIL) have fallen 0.21% and 1.9%, respectively, on a 30-day-trailing basis.
These Factors Are Playing on Gold and Precious Metals Today
Gold touched its three-week high level on Thursday, November 9, of $1,289.5 and closed at $1,287.5 per ounce.