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.
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.
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.
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.
Agnico-Eagle Mines (AEM), Barrick Gold (ABX), Royal Gold (RGLD), and Cia De Minas Buenaventura (BVN) fell 0.36%, 0.52%, 0.73%, and 4.1%, respectively, on May 2.
While gold miners have been out of favor for a long time, that might be about to change. Since the uncertainty in the market is increasing, gold prices are poised to rise.
In this part of our series, we’ll look at the correlation between gold and four mining stocks: Royal Gold (RGLD), Goldcorp (GG), Sibanye Gold (SBGL), and Gold Fields (GFI).
Among the core indicators playing precious metal prices is the rise in US inflation, which is currently at 2.2%—almost at growth of 1% compared to the start of 2016.
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 […]
Equity markets It’s no secret that US equity markets (SPY) (SPX) seemingly hit higher highs every other day in 2017. The S&P 500 rose 19.4%, reaching record highs. Therefore, it comes as no surprise that market participants are worried about valuation getting stretched. While higher valuation doesn’t automatically mean assets are overvalued, the perception of […]
Among these spreads, the gold-silver spread is the most talked about because it measures the number of silver ounces it takes to buy a single ounce of gold.
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.
Gold prices remain under pressure as the demand for alternative investments, including equity stocks and bitcoin, remain strong in the risk-on environment.
Precious metals and miners saw some relief on December 13 after the Fed raised rates as expected. Sibanye Gold (SBGL), Aurico Gold (AUQ), and Goldcorp (GG) rose 3.5%, 3.6%, and 5.8%, respectively.
In this part of our series, we’ll look at the technical indicators for mining stocks. We’ll discuss the call-implied volatility and RSI (relative strength index).
While geopolitical tensions, low US inflation, and uncertain policy reforms have been supporting gold, the other key factors have been working against it.
Barrick Gold has seen a declining trend in its correlation to gold over the past three years, while the other three miners witnessed a mixed trend in correlation.
Precious metals rose on Tuesday after their impactful retreat on Monday. The market was eagerly waiting for the Federal Reserve minutes due on Wednesday.
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 […]
If we look beyond the dollar influence on precious metals, we can analyze how the probability of an interest rate hike could influence precious metals and their miners.
The iShares MSCI Global Gold Min (RING) and the VanEck Vectors Junior Gold Miners (GDXJ) have seen YTD (year-to-date) gains of 6.4% and 9%, respectively.
First Majestic Silver and Yamana Gold have seen a YTD loss of 11.1% and 5%, respectively. Royal Gold and Agnico have seen a YTD gain of 40.6% and 7.2%.
While China and Russia have the fifth and sixth largest gold reserves globally, the movements in them are the most watched by gold investors the world over mainly because these economies have been quite vocal about adding gold reserves.
Mining stocks’ correlation with precious metals Most of the time, mining stocks’ performance follows that of precious metals. However, they can deviate. Correlational analysis can give investors some insight into how mining stocks relate to gold and silver. In this part of our series, we’ll compare Royal Gold (RGLD), Goldcorp (GG), New Gold (NGD), and Newmont Mining (NEM). Mining […]
The iShares MSCI Global Gold Min (RING) and the VanEck Vectors Gold Miners (GDX) have fallen 1.3% and 1.4%, respectively, on a five-day-trailing basis.
Haven or not? While gold (IAU) (SLV) has an inverse relationship with the dollar, stock markets also have a deep connection to the metal. Investors commonly perceive gold as a haven in the event of a severe stock market downturn. Presumably, when we experience a global market decline, stocks and currencies move downward. Riskier assets become […]
