Category: Gold & Silver Stocks 2024
The analysis published under this category are as follows.
Friday, September 06, 2024
GOLD WILL CONTINUE TO OUTPERFORM MINING SHARES / Commodities / Gold & Silver Stocks 2024
By: Kelsey_Williams
No amount of wishful thinking and baseless proclamations will change that. Owning gold stocks (miners) instead of the actual physical metal (in other words, processed and refined with appropriate hallmarks and in tradable form) is a losing bet. Investors should ignore the siren song of gold mining shares.
At their highs last week, gold stocks had increased eighty percent from their lows just two years ago. If you had bought then, and held through a thirty percent drop in 2023, you would be up about seventy percent at current prices. That compares very favorably to gold which was up fifty-five percent over the same period. Congratulations if you benefited from that.
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Friday, August 23, 2024
Gold Mid-Tier Mining Stocks Fundamentals / Commodities / Gold & Silver Stocks 2024
By: Zeal_LLC
The mid-tier and junior gold miners in this sector’s sweet spot for upside potential just finished reporting truly-spectacular quarterly results. Fueled by dazzling record gold prices and lower mining costs, smaller gold miners’ unit earnings skyrocketed to their highest levels ever. Those incredibly-rich profits have left mid-tiers even more undervalued relative to prevailing gold prices, portending massive catch-up rallying.
The leading mid-tier-gold-stock benchmark is the GDXJ VanEck Junior Gold Miners ETF. With $5.5b in net assets mid-week, it remains the second-largest gold-stock ETF after its big brother GDX. That is dominated by far-larger major gold miners, though there is much overlap between these ETFs’ holdings. Still misleadingly named, GDXJ is overwhelmingly a mid-tier gold-stock ETF with juniors having little weighting.
Gold-stock tiers are defined by miners’ annual production rates in ounces of gold. Small juniors have little sub-300k outputs, medium mid-tiers run 300k to 1,000k, large majors yield over 1,000k, and huge super-majors operate at vast scales exceeding 2,000k. Translated into quarterly terms, these thresholds shake out under 75k, 75k to 250k, 250k+, and 500k+. Today only three of GDXJ’s 25 biggest holdings are true juniors!
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Saturday, August 17, 2024
Gold Mining Stocks Fundamentals / Commodities / Gold & Silver Stocks 2024
By: Zeal_LLC
The major gold miners just reported their best quarterly results ever! Record gold prices combined with lower mining costs catapulted unit earnings to dazzling new records. Yet despite exploding profitability, gold stocks continue to lag gold’s mighty upleg. This anomaly won’t last, as investors increasingly realize how seriously undervalued this sector remains. The resulting capital inflows will drive gold stocks way higher.
The GDX VanEck Gold Miners ETF remains this sector’s dominant benchmark. Birthed way back in May 2006, GDX has parlayed its first-mover advantage into an insurmountable lead. Its $14.0b of net assets mid-week dwarfed the next-largest 1x-long major-gold-miners ETF by nearly 25x! GDX is undisputedly the trading vehicle of choice in this sector, with the world’s biggest gold miners commanding most of its weighting.
Gold-stock tiers are defined by miners’ annual production rates in ounces of gold. Small juniors have little sub-300k outputs, medium mid-tiers run 300k to 1,000k, large majors yield over 1,000k, and huge super-majors operate at vast scales exceeding 2,000k. Translated into quarterly terms, these thresholds shake out under 75k, 75k to 250k, 250k+, and 500k+. Those two largest categories account for nearly 4/7ths of GDX.
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Saturday, August 10, 2024
Plunging Stocks, Gold Miners, and Lucrative Implications / Stock-Markets / Gold & Silver Stocks 2024
By: P_Radomski_CFA
The stock markets around the world are sliding, and so does bitcoin – just as I warned.
Miners invalidated their tiny breakout, closed below the July low on Friday, and they are poised to slide even more.
That’s just the beginning.
Let’s start with a quote from my Friday’s Gold Trading Alert:
Stocks might have had their “oops” moment this week. (…)
Saturday, August 10, 2024
Optimal Gold Stocks Macro Evolving / Commodities / Gold & Silver Stocks 2024
By: Gary_Tanashian
The macro setup for gold stocks is evolving into something that will surprise many after decades of poor fundamentals
I don’t make a habit of pumping the most frustrating stock sector on the planet just for the sake of it. I have made a habit of discussing why, since 2003, the macro market backdrop has been adversarial to gold stocks much more often than not. By extension, internal indicators like the HUI/Gold Ratio have rightly been long-term bearish.
As you can see, the HUI/Gold ratio made a top in 2003 and has been down and flat ever since. Personally, I believe it made a double bottom earlier this year. I don’t believe that because I want to (even though I do want to). I believe it because of macro developments currently in play.
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Sunday, May 19, 2024
Gold Mining Stocks Fundamentals / Commodities / Gold & Silver Stocks 2024
By: Zeal_LLC
The major gold miners just wrapped up another quarterly earnings season, reporting great results. Sector unit profits continued blasting higher on stable production, lower mining costs, and record prevailing gold prices. Yet individually plenty of majors still struggled with rising expenses or lower output. So deploying capital in miners to leverage gold’s remarkable breakout requires handpicking fundamentally-superior stocks.
The GDX VanEck Gold Miners ETF remains this sector’s dominant benchmark. Birthed way back in May 2006, GDX has parlayed its first-mover advantage into an insurmountable lead. Its $13.9b of net assets mid-week dwarfed the next-largest 1x-long major-gold-miners ETF by nearly 28x! GDX is undisputedly the trading vehicle of choice in this sector, with the world’s biggest gold miners commanding most of its weighting.
Gold-stock tiers are defined by miners’ annual production rates in ounces of gold. Small juniors have little sub-300k outputs, medium mid-tiers run 300k to 1,000k, large majors yield over 1,000k, and huge super-majors operate at vast scales exceeding 2,000k. Translated into quarterly terms, these thresholds shake out under 75k, 75k to 250k, 250k+, and 500k+. Those two largest categories account for fully half of GDX.
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Thursday, February 29, 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! / Commodities / Gold & Silver Stocks 2024
By: P_Radomski_CFA
GDXJ declined once again yesterday, but the situation in silver juniors is even worse!
Silver Juniors in Trouble
Yes, it is possible for a market to be in an even worse position than gold junior mining stocks – that’s the case with silver juniors.
To be precise, the GDXJ aims to be exposed to about 80% gold juniors and 20% of silver juniors, but the SILJ ETF aims to be exposed to just silver miners, with the focus on junior miners.