Fool's Gold Report: Spot Gold Falls $6 As Industrial Metals Outperform

After climbing substantially to begin 2014, gold prices corrected a bit today but still held onto most of their gains. Meanwhile, palladium once again demonstrated its strength. Find out about metals here.

Jan 7, 2014 at 7:15PM

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

2014 has been a good year for gold so far, but today, the yellow metal gave up a bit of ground. Spot gold finished the day down $6 to $1,232, with analysts pointing to a stronger U.S. dollar in the aftermath of positive trade-deficit data this morning. A lack of inflationary pressure among developed-world countries and some concerns about central-bank meetings and the Fed's release of meeting minutes also weighed on the market. SPDR Gold Shares (NYSEMKT:GLD) fell 0.6% in reflecting the drop, but silver took the brunt of the damage, declining $0.32 per ounce to $19.85. iShares Silver Trust (NYSEMKT:SLV) fell 1.5% in sympathy, although volume was somewhat subdued compared to yesterday's levels.

Surprisingly, mining stocks fared reasonably well. The Market Vectors Gold Miners ETF (NYSEMKT:GDX) actually gained 0.2% today, with Yamana Gold (NYSE:AUY) leading the way with a 1.2% gain. Yamana has cost advantages over many of its mining peers, and that often lends itself to outperformance even on tough days for the sector. Even in the harder-hit silver market, losses for major silver miners were modest, with Hecla Mining losing less than 0.2% on the day.

Industrial metals had better fortune for investors today, with palladium climbing $3 to $740 per ounce while platinum remained flat at $1,413. Copper prices also gained today, remaining near their best levels since early 2013. The moves for industrial metals are consistent with better economic news today, as hopes for improving economic conditions around the world could finally pull the struggling commodities industry out of its tailspin from early 2013. Until that turnaround takes place, though, many marginal mining stocks will face big challenges to survive without taking dramatic strategic action that could affect their financial prospects for years to come.

As earnings season kicks off later this week, the big question for mining stocks will be the extent to which further asset writedowns surprise investors. As long as shareholders are realistic about the need for their respective companies to adjust their price views, the gold market might be able to consolidate its recent gains and avoid further deterioration. But if investors let themselves get blindsided by accounting adjustments, falling mining stocks could bring another leg down for gold in the coming weeks.

Don't be afraid of stocks
Gold investors have feared the damage from irresponsible central-bank intervention. But those who've stayed out of the stock market have missed out on huge gains and put their financial futures in jeopardy. In our brand-new special report, "Your Essential Guide to Start Investing Today," The Motley Fool's personal-finance experts show you why investing is so important and what you need to do to get started. Click here to get your copy today -- it's absolutely free.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter: @DanCaplinger. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information