Monday, 2 June 2014

GDX - yet another bad day for the miners

Whilst there were new historic highs in a number of equity indexes, there was once again notable weakness in the miners. The ETF of GDX settled -1.0% @ $22.27. The 2013 lows look set to be broken (as is likely the case for Gold/Silver prices), GDX looks set for the teens.

GDX, daily


There is nothing bullish for spot gold/silver prices..and that is indeed going to have an overwhelming bearish effect on the mining stocks.


GDX looks set to take out the $20 threshold....the only issue is does it eventually floor in the mid teens...or melts even lower across 2015/early 2016...going sub-teens.

Eventually, the surviving miners are going to be one hell of a buy....but right now, I'm very content to wait.