Saturday, 9 April 2011

Miners follow precious metals up

Miners follow precious metals up

Gold is up $17 or over 1% to a fresh ATH of $1475 and silver made a 3% quantum leap of $1.28 not only passing the $40 mark but leaving it behind.
Miners follow the precious metals up, in spite of general stock market weakness with crude soaring against a continuous retreat of the greenback.
Gains outnumber losses by 5:2 on our GoldMinerPulse (GMP) miners list, which means that we have a considerable number of drop-outs not at the party!

Diverging performance
The graph of the GMP miner performance since inception of the GMP miners indices is really talking:

Percentage loss/gain of the gold and silver miners of the GMP list since Nov 19, 2010
Greystar at the very left, lost 37.6% over just less than 5 months time. 30 miners are in the red, which is hardly surprising, seeing the GMP gold miners index barely in positive territory. Agnico Eagle and Kinross -both in the red- are a drag on this cap weigthed index. I've cut the scale to 140% gains, leaving out the very top. At the right limit you find First Majestic with 137.5% gain.

Over 140% gains were for:  Great Panther Resources Limited (141%) Tahoe Resources Inc. (143%) Revett Minerals Inc. (145%) Treasury Metals Inc. (206%) and the absolute top NGEx Resources Inc. (233%)

The GMP gold miners index is up 2.15%, making it above the mark again ending at 1019. Silver miners were up 2.9% making it to 1407, a new high.

How did we get there?

Gold and silver miners graph since inception on Nov 19, 2010
It definitely hasn't been all uphill. Gold miners made a favourable start in December, but gains faded towards New Year and the January correction sent both Gold and Silver miners indices into the red. Silver miners revived with the white metal showing strength.
In March, the Japan earthquake and the escalating Lybian conflict pushed the stock market downhill. Despite strong PM prices, the mid March stock market correction dragged the miners down.
We have seen stellar gains for silver and ultimately silver miners rallied along. Gold miners didn't really profit a lot from the continuous series of all time highs: the index just passed the 1000 mark today, with gold at a fresh ATH of $1475. Back on Nov 19, gold was over $130/oz cheaper at just $1343.
The sugar coating in all this: the quotes used for calculating these miners indices are in CAD. With the loonie now above parity to the greenback, the performance gap between precious metals and miners is less catastrophic than data might suggest.  

Note : GMP gold and silver miners indices are included in the GoldMinerPulse spreadsheet.

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