And The Best Performing Sector In 2014 Is...

Tyler Durden's picture

...Gold and Silver miners...

(click image for large legible version)

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Looney's picture

Gold Rush, Bitchez!

I'm gonna try digging for gold tonight (at our friendly local cemetery) ;-)


kliguy38's picture

shocking!.........must be some typo

idea_hamster's picture

Rats!  My money was on (1) blowing Jamie Dimon, followed by (2) squeezing the serfs.

Oh, wait -- gold supply helps temper the price rise while employing the poorest in a dangerous job that pays a fraction of its profits.  Thank goodness -- for a moment, I had lost faith in the 1%'s ability to shaft everyone else!

boogerbently's picture

Three weeks in!

?Irrational exhuberance?

thunderkiss's picture

1) Never thought I'd see that headline.

2) But it makes perfect sense because I sold my mining ETF's on Dec. 30 to offset capital gains....and haven't bought back yet!

Everyone can just thank me.  I made this happen.

Spungo's picture

I think it's against the law to buy the same ETF within 30 or 60 days or something and still claim the tax write off. What you can do is buy individual companies. Look for companies trading below book value, have a high current ratio, have little debt, have positve ROA for the past 5 years (average), and rank the companies by dividing the ROA by the cash to book. I'm a fan of IAMGOLD and Eldorado Gold because they meet all of these criteria and have excellent ROA to price to book ratios. 

hungarianboy's picture

Oh no please ZH, not again the gold pump mode.

Herd Redirection Committee's picture

Gold is up $100 in CAD in the last 30 days.  Over 8% in a month.

oddjob's picture

Bought some Gold Maples @ $1256 CAD 5 weeks ago, today...$1466 CAD

oddjob's picture

Light background, dark print...its rule #1 in Garage sale signs for a reason.

blueRidgeBoy's picture

I saw better looking websites in my Mosaic browser in 1992

HedgeAccordingly's picture

Poor Citigroup CEO Michael Corbat: Citigroup can no longer be ‘everything to everyone’

seek's picture

Whoa. That's a pretty big reversal... and a tell.

Racer's picture

China going after the source now as well?

outamyeffinway's picture

That started several years ago....

Temporalist's picture

This sector should be renamed: Tradition Bitchez

Confundido's picture

Shhhh, don't tell anyone, unless you want to see overnight "intervention".

NeedleDickTheBugFucker's picture

Mean reversion bitchez!

fonzannoon's picture

they slammed the miners pretty hard since the open today. almost every one i follow has had their gains cut in half.

Dr. Engali's picture

Couple more years like this and you might be able to break even.

Greenskeeper_Carl's picture

ya pretty much. To this day i regret not selling GDXJ when it briefly touched the low 50's. I kinda new gold was in for another longer smackdown, but I didnt. I still need another 12% or so before I am breaking even, so ill hold off on the champagne. Another monkey hammer on gold back to 1220 or so, and there go all those gains this year. Personally, I don't care if the price stays down here a while, i have pretty much already written my miner stocks off as losses, and Im more interested in accumulating more physical at this point, especially at least until I get my tax return. Its pretty much all going to my LCS or apmex/silvertowne

Wildcat711's picture

Time to expand that list a bit, my screen was all green today.  Lowest gainer was +4.7%

Bokkenrijder's picture

"And the best performing sector in 2014 is..."

Agreed...until the next smackdown comes!

silverserfer's picture

untill this article came out...

maskone909's picture

what to look for when buying a gold/silver miner

lowest amount of shares outstanding

lowest amount of $ to pull it out of the ground

lowest debt

unless they just go batshit and buy everything with gold/silver in the name

taketheredpill's picture



Location?  If you're buying an Insurance Policy do you want the company to be located on the other side of the earth?


Just feel like if Gold ever does do a moon-shot, then local governments in Mongolia, Latam or whereever will decide that Royalty fees need to be higher.  A LOT higher.  Assuming the local politician doesn't just send a bunch of his boys over with Ak47s...

maskone909's picture

true that

maybe they can just hire some mercs from blackwater?

Herd Redirection Committee's picture

Mining jurisdictions.  Like Mexico, Canada, Nevada.....  Not so much Guinea, Eritrea, Congo, etc.

For large caps, I like SLW.  For small caps, my gamble of choice is Arian Silver, they've not refined any silver these last few months (with the price at lows) because they bought their own refinery.  Should help increase recovery rates once everything is online.  DYODD

SAT 800's picture

What to look for when buying a gold or silver miner. the note you posted on the wall behind your computer desk that says; It's a stock, stupid, don't buy it !.  What to look for when buying a gold or silver miner; silver metal; in the form of bullion. Stocks are stocks and metal is metal.

endorush's picture

metal just sits there. stocks pay DIVIDEDNS



devo's picture

Sweet. Unfortunately I bought GDX at $27.


devo's picture

You're in the same boat as me, then. I think we'll be okay. Maybe soon.

Greenskeeper_Carl's picture

also SLW at around 29. but i agree. we will be ok. SLW will probably be a slow crawl, but they will make it back. i think we would be at least to the break even point on our GDX/J at around 1350-1375, especially if its over a 5 or 6 week period, so it looks sustainable

devo's picture

Are you looking to get out at break even?

I'm still unsure on that. I thought the miners were cheap at $27, but the drop to $20 made me question that. I guess it depends if sentiment has actually changed. Yellen is probably going to start doing wild shit, too.

Kirk2NCC1701's picture

Let's just say that... "It's a long way to Tipperary" for me.  Over-allocated anyway.

Looking at BTFD stuff.  Not the Argie Peso.  The CAD $, on the other hand... the only G8 anomaly that looks like a BTFD case.

Frank N. Beans's picture

bring it, bitchez.  I'm in.


monopoly's picture

I would not be concerned. Lets chat at 54 for GDX. And maybe all, just maybe,.....Our Turn>

thatthingcanfly's picture

I certainly hope this isn't another head-fake. It's about bloody time the PM sector showed green for a while.

optimator's picture

Its not about making money, its about keeping value long term for you and your family through generations.  Paper isn't the answer.  If you found dollars bills from 1919 in granddad's old lock box you'd see they lost 99 percent of their value.

Sufiy's picture

China Becomes Top Gold Consumer In 2013 

While the rest of the world is chasing Bubbles, China accumulates Gold and encourage its citizens to do the same. With more evidence that German Gold is long gone from the FED and there is less and less physical Gold left in the Gold Fractional Reserve System we are entering the blow off phase in the Gold market.   Now the most important question will be - where the Gold will come from in the future?

Kirk2NCC1701's picture

Argentina and Venezuela, on the other hand, become Top Gold Sellers.

Chavez forgot the 3 corners of the unholy pyramid:  Oil, Gold and Nukes. Gotta have all 3, before your CBs can tell the other CBs (US, UK, Israel, China, France) to go stuff it and to pick on someone else.

It doesn't matter if you have the nicest house in a poor area.  If you can't defend it, it won't be yours for long.  Shoulda had a Latin Nuke Pact.  The Fed plays for keeps.

LetsGetPhysical's picture

You realize we're only 23 days in, right? 

q99x2's picture

Bitcoin should sky rocket as protits pour into gold silver and crypto currencies.

q99x2's picture

Don't get me wrong here. I am Pro tits but I meant to write profits.

Postal's picture

If you have the profits, you can get the tits...