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).
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.
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.
Mining stock analysis In this part of the series, we’ll take a look at First Majestic Silver’s (AG), B2Gold’s (BTG), Goldcorp’s (GG), and New Gold’s (NGD) call-implied volatility and RSI (relative strength index) scores. Volatility analysis AG, BTG, GG, and NGD have call-implied volatility of 42.9%, 54.8%, 25.7%, and 52.4%, respectively. New Gold and Goldcorp have reported trailing-30-day […]
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 […]
When you look at mining stocks’ performance, it’s important to analyze their correlation with gold. These stocks typically take their directional cues from gold, which is the most dominant among precious metals.
As of October 24, 2017, Silver Wheaton (SLW), Yamana Gold (AUY), Barrick Gold (ABX), and AngloGold Ashanti (AU) had implied volatility readings of 30.8%, 48.4%, 29.1%, and 40.9%, respectively.
Gold fell for the third consecutive day on October 18, 2017, as the US dollar regained strength. However, October 19 was an up day for gold and silver.
Among the miners that we’re looking at in this part of the series, Sibanye Gold has the lowest correlation to gold on a YTD basis, while Gold Fields has the highest correlation to gold.
North Korean tensions Like the US dollar, global tensions can be responsible for precious metal price fluctuations. North Korea has interpreted US president Donald Trump’s comments as a declaration of war, stating that Pyongyang has the right to take countermeasures, including shooting down US bombers outside of its airspace. The ongoing unrest in the Korean peninsula has led to a global […]
Gold and silver-based funds such as SGOL and SIVR are impacted by changes in precious metal prices. They fell due to the fall in precious metals on Friday.
The gold-silver spread touched a peak of 85 in late 2008. The RSI level of the gold-silver ratio is 80.8, suggesting a possible pullback in the spread.
It’s expected that precious metal mining stocks will follow precious metals. So it’s crucial to know which stocks are closely associated with precious metals.
Investors are constantly speculating about the impact on precious metals of a possible Fed rate hike in June. Let’s look at some 14-day RSI scores and implied volatility.
Over the past year, silver has been very volatile compared to the other three precious metals. Silver was the highest among precious metals in mid-April 2017.
The ETFS Physical Swiss Gold (SGOL) and the ETFS Physical Silver (SIVR) have risen 8.5% and 4.1%, respectively, on a year-to-date basis as of May 18, 2017.
When analyzing the performance of a metal, investors should look at its fundamentals. In this series, we’ll look at various metrics for silver and other precious metals.
Precious metals were doing considerably well until the first half of April 2017. As investors’ risk appetites revived, haven assets slumped.
Among these metals, silver has plummeted the most.
Geopolitical risks had been playing on haven bids for precious metals, but now, we may be seeing to be a temporary respite—however brief—from global worries.
As global tumult grips markets and investors turn to mining stocks as safe havens, it’s crucial to understand which stocks are closely tied to precious metals.
Turbulence in markets due to the viability of the Trump Administration, the upcoming French elections, and the Brexit vote caused precious metals to rise.
Overall sentiment in precious metals seems to be optimistic as global concerns keep piling up. There was unrest on Monday following the failure of the AHCA.
The volatility index may finally stop being stagnant and move upward, now that the fiasco of the GOP’s healthcare bill attempt failed to launch on March 24.
Uncertainty in the market significantly affects the performances of precious metals. It also affects precious metals mining stocks, which are known to closely track precious metals.
The gold-silver spread has fallen drastically since the beginning of 2016. The most recent spread marked gold’s highest premium over silver since July 2016.
Silver is popular among investors who want to hedge against the overall risk in the market as well as those who want to link their gains to industrial performance.
Gold was trading slightly lower on December 23, 2016, before the markets started off their Christmas holidays. Gold’s fall was the result of a retreat of the US dollar from its 14-year high.
Fluctuations in the dollar are a major determinant of changes in the prices of precious metals. Gold and the US dollar mostly have an inverse relationship.
The US dollar has played a large role in the prices of precious metals, especially gold, over the past month. The US dollar has risen a whopping 3.4% on a 30-day trailing basis.
Precious metal–based funds such as the Physical Silver Shares ETF (SIVR) and the Physical Swiss Gold Shares ETF (SGOL) have seen their returns fall in the past few months.
Many of the fluctuations in precious metals have been determined by the Federal Reserve’s interest rate stance. These variations play on precious metals funds.
