Worst week since October 2008 weakens this top sector
This past week ending September 23, 2011 saw the major indices selloff almost 7% from already weakened levels and wiped out all of last weeks attempt at a rally. This rates as the worst week since October of 2008 , it was at that time the indices crashed for the following 6 months before we hit a bottom in March 2009.
In a great article by Jerry Bowyer on September 14th that was published in Forbes http://www.forbes.com/sites/jerrybowyer/2011/09/14/the-case-against-buying-gold/ he cautioned that gold may be over valued.
Gold bull or bear , this article is worth the read, and one of the best articles I have read on the subject all year long. Please take the time to read this article..
His work strengthened my belief that the number 1 sector over the last few months , the mining sector also had gotten well ahead of itself with the recent bull run in gold & silver. I had published a article highlighting the top 4 sectors and and some of the leading stocks in each sector.
I offered words of caution about the miners in this article.
So this week as gold fell 9% and sits 15% off its highs, and silver fell 24% and sits 35% off its highs, the miners suffered steep declines as well in heavy volume. Also worth mentioning is the steep decline in copper this week as well.
Below is a list of miners and their performance this past week, I have provided a link to company website’s for each. This action has either created great buying opportunities in this sector, or has signaled the start of a fall from grace for this sector going forward.
Royal Gold Inc. — (RGLD) — down 11%
Randgold Resources Adr. — (GOLD) — down 11%
Silver Wheaton Corp. — (SLW) — down 18%
Eldorado Gold Corp. — (EGO) — down 14%
Barrick Gold Corp. — (ABX) — down 13%
Yamana Gold Inc. — (AUY) — down 15%
Goldcorp Inc. — (GG) — down 11.5%
Freeport Mc. Cpr & Gld — (FCX) — down 22%
Rio Tinto — (RIO) — down 19%
Allied Nevada Gold Corp. — (ANV) — down 17%
That is all for now, and as always I can be reached by email [email protected]
Best Wishes,, $$$,, ET.
“You are never given a wish without also being given the power to make it come true. You may have to work for it, however.”
Richard David Bach (born 1936);
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