Gold Miners ETF (GDX)

[NYBob]

China is Effectively Consuming all of the World’s New Mined Gold Supply -
SWOT Analysis:



http://news.goldseek.com/GoldSeek/1424182036.php

A Few Positive Fundamental Developments for Gold Miners -

Feb 16, 2015

For the most part positive fundamentals (for gold mining companies) refers
to rising Gold prices.
However, this neglects the things under the surface which can affect
margins as much as headline prices and in some cases more.
In the chart below we plot Gold priced in Canadian Dollars, Gold against
Oil and Gold against Industrial Metals.
Before we get to the chart let me explain why these ratios are important.
First, the vast majority of gold mining firms are headquartered in Canada.
The loonie is their local currency. The Canadian Gold price for firms that
operate mines in Canada or explore in Canada can be more important than
the US$ Gold price because their costs are in Canadian Dollars and not
US$’s.
Thus, a weak loonie rather than a weak US$ is a benefit.
Second, the Gold/Oil ratio is important because energy costs can account
for 25% of a miner’s costs. Mining is an extremely energy intensive
activity.
The chart below shows that the Gold price in Canada has surged while the
Gold/Oil ratio has exploded. We also plot Gold against Industrial Metals
as a proxy for other industrial related mining costs.
That ratio has increased materially in favor of Gold but not to the degree
of the other ratios.



As evidenced by GDX, the miners formed a strong double bottom and rebounded
to the 400-day moving average which is key bear market resistance.
The miners did not have that type of support at other lows (such as in
June 2013 and December 2013).
Moreover, the miners did not have improving margins thanks to plunging
energy prices and a much weaker local currency.



The miners have made progress in recent months but the bear market won’t be
over until GDX can clear its 400-day moving average.
The good news is the miners formed a bullish double bottom after reaching
arguably their second most oversold point (from a long-term sense) in the
last 70 years.
That was followed by the positive developments discussed above and word
that the likes of Jeff Gundlach and Jim Rogers became
investors in the sector.
A new bull market lies ahead sooner rather than later but investors and
traders need to maintain their discipline and patience.

- See more at:
http://www.miningfeeds.com/2015/02/16/a-few-positive-fundamental-developments-for-gold-miners/#sthash.8bOvP5hp.dpuf

CALVF NO DEBT - 8% Dividend - Gold produced @ $599/oz -

Gold & Silver is the only REAL Legal Tender -
by The Founding Fathers for your -
Rights, Liberty and Freedom -

http://www.biblebelievers.org.au/monie.htm
God Bless