The S&P general stock index is a less than 2% below its most recent all time high. Bond markets suffer somewhat more as rates rise above the August lows. For precious metals, those tendencies don't seem to matter at all. Their own trajectory continues down with a clear intention for gold to testing the $1180 double bottom. Once more the naughty metals are sticking out their tongue to investors and speculators alike, hoping for any long established seasonal pattern to repeat for once: it seldom has last few years.
If the safe haven demand is waning on account of a stronger economy, you would at least expect the precious metals with a dominantly industrial demand to outperform gold. To a certain extent that holds: palladium has set a recent post 2008 high above $900. Platinum has lagged palladium in it ascent, but it better upheld during the recent selling spree. Silver can't make a fist, with the Gold-to-silver ratio still at 66 on Friday (despite the yellow metal especially weak). Another indicator to call the end of the gold selling wave is the miners no longer leveraging down the metals but engage in a counter trend rally. We're obviously not there yet.
Over the last week, gold slid 3.16% closing at $1228.3 on Friday. Silver is off 3.02%, closing at $18.62. The HUI index sheds almost 4% over the week, closing at 219. HUI/Gold stands at 0.178, down only fractionally since Friday Sep 5. For this and more updated graphs, see the GoldMinerPulse page:
http://gwyde.blogspot.be/p/gold-miner-pulse.html
This doesn't bode well for our contributor driven explorer & junior miner spreadsheet. Nevertheless, the weekly loss is contained to only 1.3%, bringing us to an aggregated loss of 33.8%. Little to our credit, the Forex comes to rescue: since many quotes are in CAD & AUD and the USD has been strengthening, this has been underpinning the quotes in other currencies. Over the long haul, only Oceanagold holds on to some tiny profit. Last week, we predictably had losses outnumbering gains. Yet with 15 picks down against 8 up (leaving 2 flat over the week), the balance is less negative than might be anticipated. Wellgreen Platinum and Miranda Gold lead to the upside, with double digit gains. Sabina Gold&Silver is the only explorer down double digits (12.5%).
In the benchmark section, GDXJ is down 4.6% and GLDX is off 3.8% over the week. At the opposite end, DUST, the triple bear miners ETN is up almost 14% to close with a long term gain of 23%. As a gold mining investor, you don't enjoy noticing this.
