Why are gold stocks with strong fundamentals dropping?

[MrMuppet]

I don't think you understand how value plays work, or the normal behavior of cyclicals. Value is value; market noise and short term trader opinions don't matter. I suppose it's possible that this bull cycle in miners ended in 6 months, but normally they last at least 2-3 years. Guess we'll find out.

Nah, with value plays you're buying the majority of the company for direct cashflow participation or voting rights.

But buying because "value", waiting that other guys discover your play and pump up the price so you can drop it on the bagholders is called trading. Be it 1min or 10 years.

 

[themickey]

Nah, with value plays you're buying the majority of the company for direct cashflow participation or voting rights.

But buying because "value", waiting that other guys discover your play and pump up the price so you can drop it on the bagholders is called trading. Be it 1min or 10 years.

Also free biscuit and cuppa tea at AGM

 

[D&D Finance]

XPeng. Its stock price target is $350!

 

[Jones75]

I was actively trading GLD, SLV, and SIL futures a few months ago but I would not touch them now. I have tried a few long term bull spreads on GLD, but it all fizzled out and I am out. Our reason is not to ask why but follow obediently what the market is telling us. I am getting into BTC as well. I find it like an alien planet but so far coinbase gave me free money just for my trades. I am still ahead albeit not on appreciation but on freebies.
coinbase.com allows dollar-cost averaging...it is amazing just how much BTC money is at coinbase. I rather buy BTC and average than GLD where there were issues and suspicions on the amount of physical gold. Basically, it comes down to it, who do you trust?

Very interesting.

 

[Cuddles]

gold is generally an inverse to equities.

 

[ph1l]

gold is generally an inverse to equities.

Some recent 3-year daily correlations between GLD and equity ETFs are high.

 

[Nine_Ender]

Very interesting.

You might note that the moment the sector becomes overly unloved is the moment some easy money can be made. Many of these companies make lots of money with Gold over $1700 and Silver over $20. The value proposition is registering on some miners already ( eg New Gold hit a new 52 week on Thursday ). The big miners are good value here and the more active junior and mid caps are poised to bust out on any continued strength in the gold/silver price. Even if nothing much materializes further short term, once the next production and earnings reports come out there should be more upside on most of these stocks.

So while some posters gamble on speculative stocks in other sectors, eventually guaranteed to get burned on some trades, this sector will be fine in 2021. It's a fairly low risk area with large up side potential for the next 1-2 years.

 

[themickey]

...So while some posters gamble on speculative stocks in other sectors, eventually guaranteed to get burned on some trades, this sector will be fine in 2021. It's a fairly low risk area with large up side potential for the next 1-2 years.

Yup, gold & silver, coal, natural gas are the most sold off. (Uranium too but it's been moving up lately.)