Fool's Gold Report: Metals, Miners Finish Mixed Despite Stock Market Losses

Gold prices couldn't sustain bigger price gains after stocks recovered from their worst levels of the day.

Jan 31, 2014 at 6:55PM

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.

With gold falling hard yesterday when the stock market rose, you'd expect that the yellow metal might rebound when stocks dropped today. Yet, the gains for gold prices were muted, at best, with spot gold finishing up just $3 per ounce, to $1,246, giving the SPDR Gold Shares (NYSEMKT:GLD) a gain of about a quarter of a percent. Silver's moves were even less inspiring, with a tiny $0.03 per ounce spot-price gain translating to a 0.2% loss for the iShares Silver Trust (NYSEMKT:SLV) due to the slight differences in timing between the close of the spot market and the end of the trading day for ETFs. Platinum fell $10 per ounce, to $1,369, and palladium gave back $5, to an even $700 per ounce, extending their gains from recent days.

Gold And Silver

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

Still, from a slightly longer-term perspective, investors can't be too upset about January's performance. Gold climbed about $50 per ounce for the month, posting its first winning month in five months. One negative factor that's hurting gold, however, is that weakness in emerging markets is driving investor demand in the U.S. dollar as a safe-haven currency, and dollar strength tends to pressure gold prices. In addition, with the key Chinese market taking its New Year pause, a key driver of physical demand for gold will be temporarily absent from the trading arena.

Gold miners overall were relatively flat, with the Market Vectors Gold Miners Index (NYSEMKT:GDX) finishing down $0.01 per share. But that flat performance masked volatility among individual gold stocks, with Newmont Mining falling 10% in reaction to the preliminary figures it released last night that suggested higher costs ahead for the gold giant. Yet, Goldcorp (NYSE:GG) moved in the opposite direction, rising more than 3%, as indications look more favorable that its hostile takeover bid for Osisko could succeed. Despite threats of litigation, Goldcorp investors hope that the company can cash in on Osisko's Canadian Malartic mine, which boasts relatively inexpensive costs that make it look even more attractive after gold's price declines. In the end, Goldcorp might have to boost its bid, but that might still be a good deal for the miner in the long run once gold prices recover.

Go for the real gold
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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 may not 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.

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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.

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