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Gold Miner ETF Suffers Biggest One-Day Loss in Over a Year

TedTed
in Fund Discussions
FYI: Friday’s oil crash laid waste to energy shares, but the gold miners were similarly trampled: the Market Vectors Gold Miners (GDX) just quietly suffered its biggest one-day decline in nearly 1 1/2 years.

GDX, the biggest exchange-traded fund holding precious-metal miner stocks, dropped 8.7% on to close at $18.36 on Friday. Miner stocks, which tend to act like spring-loaded vehicles for trading gold or silver themselves, have been hugely volatile in recent weeks as gold has flirted with multiyear lows
Regards,
Ted
http://blogs.barrons.com/focusonfunds/2014/11/28/gold-miner-etf-suffers-biggest-one-day-loss-in-over-a-year/tab/print/

Comments

  • hank
    edited November 2014
    The gold funds I track were down around 6% - pretty typical for these beasts.

    What isn't typical, however, is that PRNEX a natural resources fund (which I own), was also down around 6%. That has to be one of the biggest single-day losses that fund has ever experienced.

    Locally, gas prices fell about 10 cents over just a few hours this afternoon. I'd expect that by Monday they'll be off another 10 - 20 cents or so. In northern Michigan we're still paying around $2.90 - probably high by nation-wide standards,
  • MikeMMikeM
    Hi Hank. $2.90 not high by NY standards. Lowest I've seen around here is ~$3.05.

    I was temped to get back into PRNEX about a month ago. Obviously glad I didn't. I'll just let the oil wars with the Saudis and Russian sanctions and North American oil ventures play out until I see some uptrend. No sense trying to catch a falling knife.

    And miners? Haven't touched them in over 3 years and never will gamble like that again. Yeah, some year they'll go up 80%, but maybe 1 out of 100 people can time that right and make money at it... and that isn't me. Actually, fund managers playing the value game with PM miners is the reason I left ARIVX a couple years ago. A loosing game IM<HO.
  • Vert
    I believe these miners are down around 75-80% from their highs a few years ago. Once year-end tax loss selling is over, I must admit that I'm tempted to play the January Effect with them. A lot of people must be looking for tax losses this year, and these stocks are where they'll find them. The conditions for total capitulation seem ripe.
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