gold mining stock prices

Peter Schiff Predicts Resumption Of Dollar Decline, Gold Rally This Week

It’s been a while, but Euro Pacific Capital CEO Peter Schiff added a new entry to The Schiff Report YouTube vlog on Saturday. Schiff, who correctly-called the housing bust and economic crisis last decade, talked about a number of subjects, including his belief that the Federal Reserve has no intention of raising rates in March, “a lot” of dollar selling is coming, and the gold rally will resume. From the video:

The reason the Fed didn’t give a clue that it might be raising rates in March, is because it has no intention of doing so…

I think the trade deficits are going up. I think the budget deficits are going up. Certainly to the extent that we get some tax cuts. We continue to get more government spending. If we get more government spending under Trump on the military, on the border, on infrastructure. Rising trade deficits. Rising budget deficits. Rising inflation. All of this is going to be a big negative for the dollar. And of course, everybody was so loaded up long the dollar, I think the people who own the dollar- there’s a lot of dollar selling that’s coming. And I think the dollar bulls are going to end up losing a lot of money…

Since the beginning of this year the Dow is barely up more than 1 percent. You can contrast that to the price of gold which is up 6 percent so far this year. Look at gold stocks. Gold stocks are up 17 percent as a group so far in 2017. 17 percent. Everybody’s talking about the Dow. No one’s talking about gold stocks. In fact, gold stocks were the number one performing sector last year, by far. Wasn’t even close. And they’re already by far the number one performing sector this year. But nobody really wants to talk about it…

I think we’re going to see a resumption of the dollar decline and gold rally next week…


“Rising Unemployment Is Just The Excuse The Fed’s Been Waiting For”
YouTube Video

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s notes: Info added to “Crash Prophets” page. A qualified professional should be consulted prior to making a financial decision based on material found in this weblog. If this recommended course of action is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. The creator/Editor of this blog is not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information contained herein.)

Schiff’s latest book…

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Signs Of The Time, Part 72

If there’s one thing the growing masses donning rose-colored glasses despise, it’s gold.

Gold stocks included.

Myra Saefong reported over at the MarketWatch website this morning:

Many major gold companies have lost at least half their value this year after a more than 25% plunge in gold prices, but analysts aren’t convinced that miners have hit bottom — and tax-loss selling may further the declines.

The Philadelphia Gold and Silver index XAU lost 51% as of Thursday year to date and the NYSE Arca Gold Bugs index XX:HUI declined 57%. Shares of Barrick Gold Corp. ABX, the world’s largest gold-mining company, has dropped by 56% this year.

Among exchanged-traded funds, the Market Vectors Gold Miners GDX, which provides exposure to publicly-traded companies involved primarily in gold mining, sank this week to its lowest level in about five years. It’s down 55% this year.

The losses for the gold miners aren’t much of a surprise given the hefty declines in gold prices, which are poised to log their first loss in 13 years. But shares of the gold miners have suffered a drop that’s roughly double the year’s price loss for the metal.

(Editor’s note: Italics added for emphasis)

For many of those who recognize the true economic health of the nation and larger financial system and consider the so-called “sheep” as reverse indicators, the precious metal probably looks mighty attractive right now.

Downright gorgeous for plenty of veteran gold mining stock investors, I’d have to guess.

After all, it can be argued gold’s fundamentals really haven’t changed much since recent times when the gold price was up significantly higher.

Which brings to mind the following. Almost exactly a year ago, The Wall Street Journal published a surprisingly bullish article about gold stocks. Brett Arends wrote back on December 7, 2012:

In Gold Investing, Forget the Metal and Focus on Stocks

Want to buy some cheap gold? Consider gold-mining stocks.

Shares of the leading precious-metals companies have lagged behind the price of physical gold bullion so steeply in recent years that they now trade for significantly less than the value of the companies’ gold reserves, say analysts. In fact, the gap is among the widest ever seen, analysts say…

I wonder what the folks over at the Journal think about “paper gold” today?

Sequel, Mr. Arends?

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s note: I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein.)

Source:

Saefong, Myra P. “Gold miners drop over 50% with no bottom in sight.” MarketWatch. 6 Dec. 2013. (http://www.marketwatch.com/story/gold-miners-drop-over-50-with-no-bottom-in-sight-2013-12-06). 6 Dec. 2013.

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Marc Faber: ‘Gold And Silver, In My View, Are Relatively Inexpensive’

CNBC managed to interview Swiss-born investment advisor and fund manager Marc Faber on Wednesday at the SkyBridge Alternatives (SALT) Conference in Singapore. “Doctor Doom” addressed a number of topics, including where he thought equities and precious metals prices were going. Faber told viewers:

Well, I think in the long run, we have a huge bull market in gold. 1999 to 2011 we peaked out at 1,921. We went down to 1,180. We’re now slightly above 1,300. I think gold, and especially gold equities, is relatively- again, relatively-inexpensive. You understand, with zero interest rates, you misprice all the assets. It’s very difficult to make a judgment what is a cheap asset in absolute terms. Nothing is inexpensive in the asset markets anymore. But gold and silver, in my view, are relatively inexpensive. The S&P is relatively high.

(Editor’s note: Italics added for emphasis)


“Marc Faber: Chinese growth may slow to 4%”
(Segment on equities/precious metals starts at 6:49)
CNBC Video

By Christopher E. Hill, Editor
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein.)

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