Gold mining stocks crashing

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Meconomy153
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Gold mining stocks crashing

Post by Meconomy153 » Thu Nov 06, 2014 3:19 am

Gold mining stocks totally getting crushed today. This is ridiculous and quite scary for every gold stock investor. So what now? Gold is done? It's no longer relevant in our economy? After thousands of years we are seeing the end of gold's role? This is crazy, the market is pricing all miners for total bankruptcy.

As painful as it is this could go even lower. But in the long term (years and decades from now) people will look back and say wow what a great opportunity that was.

If you don't agree, take a look at what happened between 2008 and 2010.

Some miners have a good bit of cash to ride out the storm for years. To me this must be close to bottom just curious on others' thoughts!

okpatriot
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Re: Gold mining stocks crashing

Post by okpatriot » Fri Nov 07, 2014 6:52 am

Yes it now costs more to mine than the gold is worth.... Much similar to mining many altcoins :)

Gerald Celente thinks gold may dip below $1k short term, but is still bullish long term. There really is no doubt that the fiat ponzi scheme will fail at some point, and that is when gold will go through the roof. Technically it should have happened by now, but the central bankers keep using tricks and new schemes to keep the ponzi rolling. At some point they will run out of tricks in their bag to use and many countries especially Russia and China are still sucking up as much gold as they can.

Personally I think it will take a WW3 event to really trigger the next gold bull run.

MaxcoinBeliever
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Re: Gold mining stocks crashing

Post by MaxcoinBeliever » Thu Nov 13, 2014 12:27 pm

Don't forget the one huge dynamic that can and will change everything. The huge demand and a dwindling supply will eventually mean that the COMEX will default on it's already super leveraged inventory. This is a run on the bullion banks that make up the COMEX and we all know how bank runs end. It is already running a super leveraged fractional reserve.

At the same time China is accumulating and moving towards setting up international physical only markets where PREMIUMS will keep the real price of gold higher than anywhere else. There is no such thing as an arbitrage between physical and paper markets. The physical markets is where you will find the true price of precious metals and this will be the only place left to find physical for delivery. I predict that this will cause the gold and silver market to go bid only for a while and the price will sky rocket. Or it will be repriced higher overnight. So worry not my friends. Gold will continue its 5000 year run, like we have never seen in history. Pay little attention to the technicals, because in the long run, with this much demand, it means NOTHING!

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Gazzasore
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Its Low we know

Post by Gazzasore » Sat Nov 15, 2014 10:40 am

Mining Companies are really struggling right now

I am an underground miner by trade

Most mines are on the verge of closing
The price has been very low for a long time too long for many
Many have closed already or have scaled right back to try and stay afloat

But the in the End Gold and Silver will prevail and win this argument

The only problem when it does the USD would have failed Hyper Inflation would had set in in most countries
So no one knows if the Price they get for Gold and Silver will outweigh the Hyper inflated prices they will have to pay to keep the mines going
This is a $64.000 question we will have to wait and see how it pans out

EconoD
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Re: Gold mining stocks crashing

Post by EconoD » Sun Nov 16, 2014 7:02 pm

Maxcoingirl,
when you say the gold mining stocks are crashing which ones are you looking at in particular, or are you looking at some sort of index?

Thanks,
EconoD

EconoD
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Joined: Fri Oct 17, 2014 8:37 pm

Re: Gold mining stocks crashing

Post by EconoD » Sun Nov 16, 2014 7:16 pm

Does anyone follow this index?

http://finance.yahoo.com/echarts?s=%5EHUI+Interactive#

From Wikipedia:
The NYSE Arca Gold BUGS Index (also known as the HUI Index) is a modified equal dollar weighted index of companies involved in gold mining. BUGS stands for Basket of Unhedged Gold Stocks. The Gold BUGS Index is listed on the NYSE Arca under the symbol "HUI". The HUI Index and Philadelphia Gold and Silver Index (XAU) are the two most watched gold indices on the market. The main difference between them is that the HUI Index takes into account only gold mining stocks whereas the XAU Index includes both gold and silver producers.
Nice almost 7% bounce on Friday, is this just a bear market rally or the bottom? The Swiss vote on gold repatriation

Meconomy153
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Re: Gold mining stocks crashing

Post by Meconomy153 » Sun Nov 16, 2014 7:17 pm

EconoD wrote:Maxcoingirl,
when you say the gold mining stocks are crashing which ones are you looking at in particular, or are you looking at some sort of index?

Thanks,
EconoD
Hello EconoD,

I look to the sector and the index, but for example $IAG, $ABX, $ANV and $FCX are down 90% from the highs.
If gold is down 1%, the mining stocks are down more than 5%. And vv...

EconoD
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Re: Gold mining stocks crashing

Post by EconoD » Sun Nov 16, 2014 7:17 pm

Here's XAU as you can't put two urls in one post:

http://finance.yahoo.com/echarts?s=%5EXAU+Interactive#

EconoD
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Re: Gold mining stocks crashing

Post by EconoD » Sun Nov 16, 2014 7:28 pm

Maxcoingirl,

when you compare the price of gold to these companies the recent movements are impressive, trouble is you would have to time it just right! :

IAG +25% off the high
http://stockcharts.com/h-sc/ui


ANV +35%

If you could time that right, you'd have made a packet (in gold). Sounds like a gold/gold miners hedging strategy?

EconoD
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Re: Gold mining stocks crashing

Post by EconoD » Sun Nov 16, 2014 7:48 pm

So what I mean is, if you buy gold miners, you sell gold thereby limiting your loses on the miners if gold continues to fall but also benefiting from a rise in gold as the miners move faster than gold?

It's the same with silver. You can go long silver and short gold, thereby ameliorating your loses on silver if it falls but benefiting if both get stronger as silver more often beats gold on the way up (see the charts in the gold/silver thread).

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