Fool's Gold Report: IAMGOLD Plunges As Gold, Silver Weaken; Platinum Climbs

Further declines in precious metals today hit bullion prices and miners alike. Find out more about the prospects for gold and gold stocks here.

Jan 22, 2014 at 7:05PM

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.

Throughout much of the past three weeks, gold-mining stocks have performed extremely well. Even when spot gold prices have fallen, investors have seemed confident that the worst was over for the mining industry. Today, though, that dynamic appeared to change, with a key report from IAMGOLD (NYSE:IAG) weighing on sentiment across the industry. Bullion ETFs were weak going into the close, with SPDR Gold Shares (NYSEMKT:GLD) falling 0.4% to reflect the $4 drop in gold prices to $1,237 per ounce, while iShares Silver (NYSEMKT:SLV) fell 0.7% as silver prices declined to $19.80 per ounce, off $0.07. Palladium gave up $2 per ounce to $745, but platinum was the lone winner, rising $7 per ounce to $1,454.

Gold And Silver

Image sources: Wikimedia Commons; Creative Commons/Armin Kubelbeck.

Part of the reason for gold's recent pullback is that the global economy has bounced back sharply from the worst years of the financial crisis. Last week's upgrading of Ireland's sovereign debt to investment-grade status marks yet another milestone for European public finance, and debt offerings there and in Spain and Portugal have gone much more smoothly than they did in the not-so-distant past. As a result, demand for gold as protection against a deeper European economic crisis has waned, and that has taken away a key underpinning of the bull market.

Yet mining company news is also weighing on gold investors today. IAMGOLD fell 12% after releasing figures on production and costs for 2013 and guidance for 2014. Despite cash costs at the lower end of anticipated ranges, IAMGOLD reported all-in sustaining costs at the upper end of previous guidance, and production levels weren't as impressive as investors had hoped to see. At the same time, IAMGOLD expects higher total cash costs, and cost-cutting measures like tightening capital spending could create further pressure on production volumes even as the company tries to concentrate on high-margin production. Those tough decisions are representative of what many players are the industry are having to make, and the overall fear sent the Market Vectors Gold Miners ETF (NYSEMKT:GDX) down 2.6% today.

Investors continue to wait to see what the Federal Reserve will do with its monetary policy at its meeting next week. Until then, gold prices will likely remain choppy, barring unforeseen events that could introduce unexpected volatility into the market.

All that glitters is not gold
As much as investors like gold, energy has been the place to be lately. Finding the right plays while historic amounts of capital expenditures are flooding the industry will pad your investment nest egg. For this reason, The Motley Fool is offering a comprehensive look at three energy companies set to soar during this transformation in the energy industry. To find out which three companies are spreading their wings, check out the special free report, "3 Stocks for the American Energy Bonanza." Don't miss out on this timely opportunity; click here to access your report -- 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.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.

Compare Brokers