Saturday, 31 October 2015

Precious metals retreating push miners down the cliff

By mid October miner sentiment had improved as gold broke above $1180, but there's little left of that optimism. With gold closing October at $1141.7, down 1.9% over the week, the yellow metal has given back about half of its October gains.  Silver at $15.535 (-1.7%) doesn't do much better. The white metal only briefly regained $16 by mid October.

How brutally sentiment turned is clear from the Oct 30 update on the Miners' Performance with only 12 miners advancing, against a 67 majority of miners declining over the last two weeks in October. 
Miners were down almost across the board last week, with the HUI index down 9.74% over the week to close at 122.7. HUI/Gold slid to 0.1075. You find updated graphs on the gold miner pulse blog page.
Our benchmarks ETFs are down in line with the HUI: -9.44% for GDX and -9.35% for GDXJ.  In this perspective we escape the worst: the contributor driven explorer & junior miner spreadsheet is down 5.68% and the long term loss now stands at 53.11%. Nevertheless there only are two picks up (Eurasian Minerals +21.8% and Wellgreen Platinum +7%) over the week, against  14 down, with Mirasol Resources flat.

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