Monthly Sector Report – Gold Miners 2013

April 2013 saw one of the worst price capitulations on gold futures including its biggest single-day plunge in 30 years. On April 15, gold fell by more than 9% to $1,361/ounce, its most spectacular drop since 1983. In two days, the metal had lost a total of 13% and dropped to its lowest level in more than two years.

In fact, gold was not the only price anomaly in April – Silver was also beaten down in the same period and dropped below $26 for the first time since November 2012. It was the worst 2-day price drop on Silver since September 2011.  In that same week, Natural Gas broke above $4 for the first time since September 2011.

These wild swings are because of the flight of money in and out of safety and quality due to inflationary pressures. Investors now are unsure about risk and even more unsure about safety in commodities as prices have been deemed to be inflated. Some have even called the drop in gold, silver and oil Demand Destruction.

This report looks at the possibility of profiting from this in any direction by checking out the companies that mine gold. It will be based on the recent earnings and outlook as well as the strength (or weakness) in their fundamentals to support their outlooks.

With earnings season winding down in a couple of weeks and most of the companies having already reported their numbers, this will be an opportune time to take some speculative trades and ride on the secondary moves of some of these companies.

Click here to get the full report.

Subscribed Members can download their copy here.

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