SSgA SPDR Gold Shares
What Could Drive IAMGOLD Corp.’s Valuation Going Forward?
IAG stock could continue to gain traction due to its high operational leverage, at least as long as the upward trend in gold prices continues.
Gold and Silver Fell on July 22
At 2:50 PM EDT on July 22, precious metal producers Barrick Gold (ABX), Newmont Mining (NEM), and Royal Gold (RGLD) gained ~1%, ~2.0% ,and ~0.77%, respectively.
Gold Prices Have Been Flat despite the Weak Dollar
Gold (IAU) (GLD) prices usually have a strong negative correlation with the US dollar (UUP). Gold, like other commodities, is denominated in the dollar.
Bernstein on Making Money in the Market in 2018
Richard Bernstein on making money In an interview with CNBC, prominent investor Richard Bernstein shared his views on global equity markets and how to make money in 2018. In the previous part, we saw that he advised investors to stay invested in the market as long as corporate earnings are accelerating. Bernstein also said that the best way […]
Why gold supply dynamics differ from other commodities’ dynamics
China is the largest gold producer in the world, accounting for 14% of total production. East Asia as a whole produces 21% of the total newly mined gold. Latin America produces around 18% of the total.
Understanding IAMGOLD’s 2Q17 Earnings Highlights
IAMGOLD’s (IAG) 2Q17 production was 223,000 ounces of gold—growth of 26,000 ounces or 13% year-over-year (or YoY).
What Caused the Fall in Precious Metals?
Gold prices plummeted on Wednesday, January 25, 2017, and gave the lowest close in recent weeks.
How Much Does the US Interest Rate Influence Gold?
Gold and interest rates have a close inverse relationship. The higher the rate for Treasuries, the lower the demand for non-yield-bearing assets such as gold and silver.
Commodities Are Mixed in the Early Hours on March 19
At 6:05 AM EST on March 19, the West Texas Intermediate crude oil futures for May 2018 delivery were trading at $62.20 per barrel—a drop of 0.34%.
Do Central Bank Gold Holdings Point to a Bright Future for Gold?
Central banks have been net buyers of gold since the beginning of the financial crisis of 2008.
SPY trades flat after Greece delays debt deal
The SPDR S&P 500 ETF Trust (SPY) traded flat as investors were cautious about Greece’s debt deal negotiations with its Eurozone partners.
Why investors should watch ETF holdings closely
Outflows from exchange-traded funds (or ETFs) led to an ~28% fall in gold prices in 2013. They sold a combined 881 tons of gold. Investors should monitor the change in ETF holdings.
Goldcorp’s cost reduction compared to its peers
Goldcorp’s (GG) all-in sustaining costs (or AISC) are falling. In 2013, its AISC was $1,031 per ounce. It expects the AISC to be in the range of $950–$1,000 for 2014.
Recommendation: You should favor longer-dated Treasuries
The 10-year Treasury yield still appears attractive relative to sovereign rates elsewhere in the world. In addition, longer-dated Treasuries also look more attractive than those with two- to five-year durations.
Key Insights from Goldcorp’s 3Q17 Earnings
Goldcorp (GG) reported its 3Q17 results after the market closed on October 25, 2017. It reported EPS (earnings per share) of $0.13, which beat analysts’ expectations by $0.02.
How Stocks and Bonds Reacted to Trump’s Victory
The CBOE Volatility Index suddenly rose 6.0% on November 9, 2016, after it was clear that Trump had unexpectedly clinched the election.
Low crude oil prices impact gold
Cheaper oil means lower inflation. This means gold should be affected negatively since it’s usually considered a hedge against inflation.
Gold Rose amid Increased Demand for Safe-Haven Assets
These economic concerns and monetary stimulus expectations have decreased the probability of an interest rate hike by the US Federal Reserve, and the chances of an interest rate hike in July dropped to zero.
Key Highlights of Iamgold’s Q2 2018 Earnings
Iamgold (IAG) generated revenues of $277.4 million in Q2 2018, which represents a YoY (year-over-year) growth of 1.1%.
Main Paulson holdings traded in the fourth quarter
Paulson holdings include bullish positions in Allergan (AGN), Mylan (MYL), and Time Warner Cable (TWC). Its event-driven fund, Advantage, lost 29% in 2014.
Things you need to do today before inflation takes off
So what should investors be doing today? While inflation may take another year or more to get going, it’s not too early to start implementing long-term inflation hedges.
4 must-know facts about rising inflation and your portfolio
Recent readings have shown that inflation has stabilized, which is a good thing, but signs of an imminent acceleration in inflation are still scant.
Commodities Are Strong Early on June 14
At 6:15 AM EST on June 14, the WTI crude oil futures for July delivery were trading at $66.84 per barrel—a gain of 0.32%.
Assessing variables that drive the outlook for gold prices
Physical buying from China and India should support the demand for gold. But a rate hike by the Fed could be the catalyst that could take gold down.
Precious Metal Moves on Thursday, September 28
Gold touched a one-month low on Thursday, September 28, due to the rise of the US dollar over the speculation of another rate hike in December 2017.
Palladium Trades at Multiyear Low Owing to Chinese Slump
Palladium has seen six out of seven down trading days as of January 12. The recent stock market slump in China, which caused global tumult, hurt palladium.
Commodities Are Strong in the Early Hours on December 15
At 6:30 AM EST on December 15, the West Texas Intermediate crude oil futures for January 2018 delivery were trading at $57.34 per barrel—a gain of 0.53%.
Copper, Gold, and Silver Are Trading Lower on Thursday Morning
Copper is trading lower on Thursday. At 6:36 AM EST, the COMEX copper futures contract for July delivery was trading at $2.06—a decline of 1.1%.
These Gold Miners Surprised Us with Unit Costs in 3Q17
AISC (all-in sustaining costs) are an encompassing measure that helps compare miners’ performance—a vital metric for investors. They show the company’s margin cushion at prevailing gold prices (GLD)(IAU).
How US labor conditions impact gold investors
It’s important to keep an eye on labor conditions since they offer a look at the future direction of gold prices and ultimately gold-backed ETFs.
Gold ETFs and Miners Taking Cues from Rate Hike Conundrum
Investments in the precious metals sector—including mining—substantially depend on the rate hike conundrum.
Lagunas Norte: Increasing Barrick’s cost per unit
Lower ore grade increases the amount of waste stripping required—in order to extract some volume of ore—as a result of mining more tons of waste.
Newmont Mining’s Valuation Multiple: More Upside Potential?
Among senior gold miners (GDX), Newmont Mining (NEM) has the second-highest forward enterprise value-to-EBITDA multiple of 8.1x.
Why Goldman Sachs Looks Bullish on WTI Crude but not on Gold
Goldman Sachs expects WTI crude oil price to be $55 per barrel in 1Q17 and 2Q17. These estimates were raised from $45 and $50 per barrel, respectively.
Gold Trading around $1,300, Silver Declines
At 8:45 AM Eastern time, gold futures contracts for June delivery were trading at $1,298.75 per ounce, a gain of 0.23%. Silver was trading at $17.59 per ounce, a loss of 0.37%.
How Closely Are Equities Tracking Gold?
Precious metals often run in the opposite direction of stocks. Whenever the risk appetite of investors is high, stocks tend to perform well.
Why Did Crude Oil Fall 2.2% Last Week?
US crude oil prices (USO) (OIIL) fell by 2.2% in the week ended June 17, 2016. Crude oil closed at $47.98 per barrel on the same day.
Why Is Gold Struggling at a 1-Week Low on August 8?
At 2:40 PM EST on August 8, the COMEX gold futures contract for December delivery was trading at $1,341.35 per ounce—a drop of ~0.23%.
Economists Disagree with Trump’s Fiscal and Trade Deficit Views
Donald Trump has been vociferous about cutting taxes. He intends to reduce the current seven tax brackets to three.
Copper, Gold, and Silver Are Stable Early on October 7
At 6:35 AM EST on October 7, the COMEX copper futures contract for December delivery was trading at $2.15 per pound—a fall of ~0.12%.
Behind Mining Stock Technical Indicators as of Monday, October 16
AGI, SLW, ABX, and KGC currently have RSI levels of 50.3, 74.3, 44.4, and 50, respectively.
Gold Demand Stays Strong in China
After the $5 billion stock market collapse in China, investors fled to gold. Even a third straight annual decline in prices has failed to make gold lusterless in China.
Why Is Gold Trading at Its Lowest Price Levels in 3 Weeks?
The market is anticipating the speech by the Federal Reserve chair, Janet Yellen, at the annual central bankers meeting to be held in Jackson Hole, Wyoming, on August 26.
How the Physical Gold Demand Translates to Prices
India and China make up 50.0% of the global demand for physical gold. When gold prices fall, physical gold-buying provides support for gold.
Why US public debt increased year-over-year in FY14
U.S. public debt is the amount owed by the federal government in terms of outstanding treasury securities. For September 2014, U.S. debt to GDP was 102.9%.
Markets Started Strong and Finished Solid Last Week
Last week, financial markets opened on a strong note as Hurricane Irma died down and the damage was less than anticipated.
Why the US real interest rates stabilized in September
Real interest rates are adjusted for inflation. As real interest rates rise, other investments usually become more attractive. This reduces the demand for gold and vice versa.
Key Highlights from IAMGOLD’s Q3 2018 Earnings
IAMGOLD (IAG) generated revenue of $244.8 million in the third quarter, a YoY (year-over-year) fall of 9%.
Must-know: Which safe havens are truly safe?
Although not considered safe haven assets, in the current context of high geopolitical risk and consequently volatility, investors could consider investing in sectors like energy and large cap companies.
Must-know: Why investors should ignore the Fed’s projections
Macroeconomic analysis should be forward-looking, but trying to anticipate policy changes based on the Fed’s projections has been a losing strategy.
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.
Is There a Significant Upside to Goldcorp’s Production Guidance?
In 2015, Goldcorp (GG) achieved record gold production of 3.5 million ounces. This is a solid 24% growth YoY. The company achieved its production guidance of 3.3–3.6 million ounces.
Friday’s Fall in US Stocks Erased Earlier Weekly Gains
US stocks represented by SPY and SPXL fell on Friday, December 18. The oil ETF fell by 0.7% due to the oil supply glut. US WTI crude fell by $0.22.
Outlook for Investors as Rates Start to Rise
Despite headwinds in the form of soft wage growth, low inflation, and a falling labor participation rate, the labor market looks robust.
Are Analysts Turning Bullish on Gold Post-Brexit?
According to the median of 12 forecasts in a Bloomberg survey of analysts and traders, gold prices could reach as much as $1,424 per ounce by the end of the year.
Once Again, Soros Makes Money off the UK’s Woes
Four days before the UK (EWU) decided to leave the European Union (VGK), Soros warned the markets of a “Black Friday” and a crash in the pound.
Analyzing Commodities in the Early Hours on February 7
At 4:45 AM EST on February 7, the West Texas Intermediate crude oil futures for March 2018 delivery were trading at $63.36 per barrel—a fall of 0.08%.
Why execution is key to Barrick’s share price going forward
Barrick’s high financial leverage is a key investor concern. Resolving this could lead to rerating of Barrick stock, a positive for Barrick’s share price.
Equities: The Best-Performing Asset Class In The Long Run
Equities are the best-performing asset class over the long run. The CAGR for equities over the last 20 years, not considering the dividends, is 13%.
US Markets Flat as Unemployment Claims Rise
The US dollar index was trading on a lower note on March 31, 2016, at 2:30 PM EST as unemployment added further uncertainty to the US rate hike.
Why Gold Failed to Catch Bids despite Escalating Trade Tension
In times of escalating geopolitical or economic concerns, gold often acts as a safe-haven asset. This year, however, gold’s safe-haven appeal seems to be somewhat tarnished.
What Goldcorp’s healthy prospects mean for investors
Goldcorp’s asset portfolio is located in politically stable, low-risk jurisdictions in the Americas. This is one of Goldcorp’s key advantages. Many gold miners are facing political instability and taxation issues.
Gold Fell as US Interest Rates Soared
Investors were somewhat pessimistic about gold during the last quarter of 2016. Most of the fluctuations were due to the news of the interest rate hike.
Why India’s real interest rates are moving up, affecting gold
Tracking China and India’s inflation figures can give you insight into gold prices’ future direction. It also provides you a look into gold-backed exchange-traded funds (or ETFs) like the SPDR Gold Shares (GLD).
India’s Slumping Gold Imports Are Bad News for Gold Investors
India imported gold worth $1.97 billion in June—a fall of 37% YoY (year-over-year). That’s quite low compared to a rise of 10.50% YoY in May.
Is Jeffrey Gundlach’s Prediction on US Stock Markets Coming True?
On November 20, Jeffrey Gundlach told Reuters that investors haven’t shown an appetite for Treasuries even though US stock markets have fallen.
Strong Equity Markets Pinned Gold Lower
As gold rose initially, the revival in the equity markets shadowed the precious metal. Silver maintained its gains. It’s used as an industrial metal.
How Were Copper, Gold, and Silver Trading on Monday?
China’s better-than-expected growth in real estate investments in April supported copper prices on Monday.
What Are Leon Cooperman’s Top Holdings?
In Q3, billionaire investor Leon Cooperman’s top five holdings were Fiserv, Alphabet, United Continental, Chimera Investment, and Cigna.
What Factors are Impacting Yamana Gold’s Valuation?
Yamana Gold’s (AUY) valuation multiple has varied widely between 5.1x and 15.1x.
Why demand for gold may be waning around the world
The fraction of total gold output held by central banks around the world has continued to decrease over the last decade and a sharp reversal in this trend is unlikely.
Must-know: Why central bank policies impact gold price
Central bank policies can have a significant impact on gold price. Central banks are a large gold holder. They own ~30,500 tons of gold. This is close to 20% of the gold ever mined. As a result, their policies on gold sales, gold purchases, and other monetary policies can have a significant impact on gold price.
Gundlach on Higher Yield: Watching the Copper-to-Gold Ratio
Billionaire investor and bond guru Jeffrey Gundlach also shared his view on bond yields in an interview with CNBC.
Must-know: Why the Fed drove up emerging market asset prices
Many economists, like the Nobel Prize–winning Paul Krugman, believe that the Fed acted as a “white knight” in 2008, saving the global economy in the dire aftermath of the financial crisis.
What Are Jeffrey Gundlach’s Views on Gold and the US Dollar?
Gundlach also had something to say about assets other than bonds and stocks like gold (GLD) and the US dollar (UUP).
Will Goldcorp’s All-In Sustaining Costs Be Higher than Peers’?
Goldcorp continued with its lower cost trend, as the key cost metric AISC (all-in sustaining costs) fell 21% YoY and remained almost flat QoQ in 3Q15.
Barclays on Goldcorp: 30% Upside from Its Current Level
According to Barclays (BCS), Goldcorp (GG) has the potential to provide nearly 30% upside from its closing price of $13.80 on June 23, 2017.
Why increasing money supply is related to inflation
Money supply is the total amount of currency and other liquid instruments in circulation in an economy. Money supply data is usually collected and published by the country’s central bank.
Still in a Rut: Soft Wage Growth Persisted in February
The trend of soft wage growth persisted in February. Wage growth hasn’t been able to break out of its rut. It continues to stay at a YoY level of 2%.
Gold Gains on US-Mexico Trade Deal—What’s the Upside?
Gold prices (GLD) recorded their first weekly gain last week after six weeks of continued losses. What changed?
As Gold Miner ETFs Rally, Why Are Gold Prices Headed South?
When gold prices fell by 11% in 2015, GDX amplified that loss by returning -25%. In 2016, GDX amplified gold’s gains positively.
Equities or Bonds: Which Will Outperform during Trump Presidency?
On November 9, 2016, the iShares 20+ Year Treasury Bond ETF (TLT) fell 4.2% following Donald Trump’s win.
Must-know: An overview of Newmont Mining
Newmont Mining Corporation (NEM) is the world’s second largest gold producer and the only gold company included in the S&P 500 Index.
What Led to Weaker Production Performance for Kinross in 2Q16?
Kinross Gold (KGC) produced 671,267 GEOs (gold equivalent ounces) in 2Q16, which represents a 1% YoY (year-over-year) rise but a sequential decrease of 2%.
Why Gold’s Safe-Haven Demand Remains Tepid
Gold is often touted as the safe-haven asset that investors embrace in times of economic and political uncertainty.
Will Tax Reform Add to US Debt Concerns?
The main factor that caps economic growth and inflation for a country is the amount of debt the country carries. Debt, if used in the right way, can boost economic growth—but it can also damage the economy.
Overall Snapshot of the Market on November 25
On November 25, the SPDR S&P 500 ETF closed on a flat note ahead of the holiday. It closed at $209.3. The Energy Select Sector SPDR ETF fell by 0.81% on the day.
Buffett, Dalio, and Gundlach’s Views Converge on Bitcoin
Many prominent investors have a strong dislike of bitcoin (BTC). Jeffrey Gundlach, who believes Bitcoin could easily rise 25% and return to a $5,000 price point, still doesn’t advise investing in it.
Eldorado Gold: The Worst-Performing Gold Miner in January
Eldorado Gold (EGO) is Canada’s second-largest gold mining company, whose price is trading at $2.22 per share as of January 28, 2016.
How Do Barrick Gold and Newmont Goldcorp Stack Up?
So far, Barrick Gold (GOLD) stock has been trading in a narrow range in the fourth quarter. The stock has risen almost 30% in 2019.
Will Barrick Gold See Any Upside Going Forward?
Barrick Gold (ABX) stock has fallen 30% year-to-date, and it has underperformed relative to its peers in the gold sector. This is mainly due to the firm’s high debt profile.
Which South African Miner Offers the Optimal Geographical Mix?
AngloGold Ashanti (AU) it is less exposed to South Africa than other South African miners. About 28% of its production comes from South Africa.
US Dollar Strengthens after Dry Spell: Can It Continue?
The US dollar (UUP) is gaining strength after a short dry spell.
Is It a Good Time to Look at Gold?
The SPDR Gold Trust ETF (GLD) has fallen ~8.0% year-to-date and ~11.0% from its April peak.
Gold Prices Remain Almost Flat Despite the Appreciating Dollar
This series analyzes gold prices and market fundamentals. June gold futures trading on the COMEX slightly declined by 0.02% on May 22, 2015.
Why an increase in real interest rates makes gold lose its sheen
Gold doesn’t give any returns besides appreciation. Appreciation doesn’t always happen. As a result, gold has to compete against assets that yield something. When the return on the alternate assets begins to rise, the demand for gold falls. In a scenario where the real interest rates are rising continuously, the demand for gold—as an investment—will start falling.
Gold Inches Higher on Weaker Dollar and Global Uncertainties
After falling for two consecutive trading days, gold regained its strength on Wednesday, June 29, amid increasing concerns over the stability of the global markets.
Barrick’s Cortez mine: Production down year-over-year
The Cortez mine is one of the largest and lowest-cost mines in the world, with huge upside exploration potential. It is Barrick’s largest-producing mine and contributes close to 15% of the total production.
Could Gold Prices Rise as Market Concerns Increase?
Due to more uncertainty and the positive macro backdrop offered by the Fed, gold prices (IAU) (JNUG) could get another significant boost.
How Are Silver Miners Doing as Silver Outshines Gold?
Silver has outperformed gold year-to-date (or YTD). The SPDR Gold Shares ETF (GLD) has risen 17% YTD, while the iShares Silver Trust ETF (SLV) has risen 24%.