Wednesday, 26 April 2017

Regression between the Gold Price and the HUI miners index

The miners rally since end January has been almost miraculous, with the HUI index more than doubling over less than six months. Since mid August however, much of the gains have evaporated. That doesn't come as a surprise because gold is back down to around $1260, from its 'lofty high' over $1360/oz both in the second week of July and early August.
Graphs were updated on April 25, 2017.


Tuesday, 18 April 2017

Canadian Miners Performance Update

With the yellow metal well above $1250, miners have rallied from their correction bottom reached mid December 2016.  On April 12, the HUI index is up 33% from this mid December bottom, yet from its bear market bottom that adds up to a more impressive 115%.  However, from its August rally top the HUI still is down 25%.  Following tables shed light on how the individual explorer, developer and mining stocks performed during these hectic days.

Tuesday, 21 March 2017

Miners relative to gold: Long term charts on the HUI gold miners index

Miners and Gold bullion

There clearly is a good correlation between miners and gold bullion, which doesn't come as a surprise. However, when the much claimed leverage is concerned, it seems to get a bit tricky. There sometimes is upside leverage with miners outperforming a rising gold price. We've also witnessed miners lagging gold in its ascent. Yet invariably, gold retreating implies an ugly decline for gold miners. 

Thursday, 23 February 2017

Abnormal returns

The 2017 Credit Suisse Global Investment Returns Yearbook (CS-GIRY) has been released.  This is the kind of message part of the investment community is looking for in the second half of February.

Thursday, 5 January 2017

A case for the 'white precious metals'

The precious metal recovery in January last year was led by gold, with the white precious metals - especially silver and platinum - following reluctantly. The idea of a more sluggish growth in China translated into expectations of lower demand for industrial metals. In January 2016, copper quoted at a decade low. 

Saturday, 31 December 2016

Precious metal miners relative to metal prices

Precious metal prices determine the revenue of gold or silver mining companies. Their mining costs may vary widely and moreover are subject to fluctuations of foreign exchange rates.  Yet it still makes sense to compare miners relative to the metals.

Thursday, 17 November 2016

Regression between the HUI miners index and the Gold Price

The miners rally since end January has been almost miraculous, with the HUI index more than doubling over less than six months. Since mid August however, much of the gains have evaporated. That doesn't come as a surprise because gold is back down to around $1260, from its 'lofty high' over $1360/oz both in the second week of July and early August.
Graphs were updated on April 25, 2017.


Friday, 21 October 2016

Silver Miner ETF's - A Benchmark

Silver miners are barely significant when compared to the gold mining sector, Despite doubling, gold miners remain but a niche market. With two Silver Miner ETF's this tiny sector is very well covered.

Monday, 12 September 2016

Designed to outperform

A benchmark among Large Cap Gold Miner ETFs

The first severe correction since the onset of the gold miner recovery that started late January raised doubt and fear among investors. Not surprisingly miners gave way much more than did precious metals. As a result miners slid from overvalued relative to where gold was a month ago to undervalued at present.

Saturday, 6 August 2016

Gold miner impulse phase

Over half a year has lapsed since Gold and Silver miners bottomed on Jan 19. Time to make an evaluation of the first half year of a rejuvenated precious metals bull market and the impulse phase on precious metal miners.