Are Miners Leading Gold?
Are the miners leading gold or is gold leading the miners. If it is the former, gold is poised to fall further. Many miners have been hit hard lately and some falling below their 2008 lows. Take IAMGOLD Corp (IAG) for example. Larry Edelson told his clients the gold market had bottomed and was beginning to give out stock picks like IAG. The stock went up at first and then the bottom fell out. Edelson has since turned to a bear on gold, but that didn’t help his clients who are now down 25% from his call. IAG has broken below its 2008 low. Where is the bottom? What will this stock do if gold breaks down further? What will most other mining stocks do?
Gold and the miners had an up and down day Friday. Market makers simply had their fun and on a day like Friday, it was best to take a 3 day weekend rather than trade. The mining stocks did seem to follow the overall stock market up and down. Scores remained the same, but notice the real weakness in GDX which did break to a 52 week low on Oct. 8th.
10-10-14 GLD Chart
10-10-14 SLV Chart
10-10-14 GDX Chart
Asia Market Open
Looks like Asia wants to continue the gold move higher as the yellow metal opened up $10 higher. Silver lagging a bit up 8 cents. We’ll see if the miners follow through or if the London and New York pros bring it down. Gold remains a sidelines trade either way and it would be very difficult to go long miners with such weakness. We’ll see what happens Monday.
Disclosure:
Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with capital you can’t afford to lose. This is neither a solicitation nor an offer to Purchase/Sell futures or options. No representation is being made that any account will or is likely to achieve gains or losses similar to those discussed in this outlook. The past track record of any trading system or methodology is not necessarily indicative of future results.
All trades, patterns, charts, systems, etc. discussed in this outlook and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author.
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About Doug EberhardtDoug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
Disclosure:
Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with capital you can’t afford to lose. This is neither a solicitation nor an offer to Purchase/Sell futures or options. No representation is being made that any account will or is likely to achieve gains or losses similar to those discussed in this outlook. The past track record of any trading system or methodology is not necessarily indicative of future results.
All trades, patterns, charts, systems, etc. discussed in this outlook and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author.