Gold ended the day off $16.40 or 1.23%. Silver lost $.51 or 2.54%. What was that all about? I don’t know yet, but I do know that nearly all of that took place overnight, before the 9:30 am New York open. It wasn’t due to some crazy move in the dollar… I checked.
In any case, I have to expect big volume was involved in our miners, and they were all down, by quite a bit! The average loss was 4.62%
Losers on big volume were as follows: CDE, ASM, SLW, SSRI, HL on huge volume, IAG, PVG, FSM, RIC, AG, SGDM, MUX, SLV, GDX, AUY and ABX.
On lighter than average volume… really! PAAS, RGLD and GLD.
Fascinating that GLD, itself, did NOT decline on any big volume, at all. In fact, it declined on lower than average volume! As did PAAS and RGLD.
Nevertheless, one broke price support, and unless it shows signs of recovery tomorrow, I’m going to have to act with discipline and sell it. That would be MUX. ABX is getting close. In fact, despite the low volume, GLD is also getting quite close. Total average volume for all was only 33% higher, not too terribly great actually.
So, what was the cause. I have not learned of it yet. When I do, I’ll put it out here. But, caution is the watchword, and the preservation of profit is paramount at this point! Whereas I had as much as a 61% gain in our miners, that now stands at 48.6%. It was quite the hit!
6:50 am EST, metals are bouncing, and shares prices of miners are bouncing overseas with them. I have a sell in MUX, but I need to see how it opens. Since yesterday was so very hard on it, on the biggest volume spike, it may rebound rather handsomely. I’m going to try to find reason(s) for the smash, and whether anything substantive actually happened. The Bull technically remains intact, only MUX has closed below support. Being the small cap that it is, just $1 billion, it does not require any super effort to hurt it worse than others. The greater sense is to watch GLD and SLV, and a charted average of all the holdings, for the better concept as to when real danger exists.
Nevertheless, if MUX does not recover intra-day, to look at least as good as the others, it will need to be sold, but a profit taken!
I appreciate the education I’m receiving, being relatively new to metals investing/trading as I am. First, it is not at all common, I now understand, for the metals to go quite dull during the summer. In the same way that stocks can be quit languid in the summer, so, too, do the metals. That’s helpful. Second, anywhere I’ve looked, the fundamental picture for the metals remains untouched. Expert analysts are saying that come the fall, new highs will be with us, as everything that’s been driving them, is still in place.
Okay, so the real matter, according to analysts, is because yesterday, even though the $USD had been rising since the very end of April/first of May, it broke out through the triple top that had formed in June, to make new recent highs. Rising dollar, falling gold… yet that wasn’t the case while it was rising in May and June… Go figure!
Checking in on MUX before the open… It is 9:00 am EST, and the market-maker has MUX marked up to a current bid of $3.82, some 7 cents above yesterday’s close, and about 2% higher. I’m seeing a lot of our miners having their pre-open bids set considerably higher than yesterday’s close… let’s see how the day goes!
15 minutes before the close, and, man, this was a different day, wasn’t it? Even MUX is rebounding better than most! 😉
Here’s to your accumulation of real wealth!
Harold F Crowell