This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

The Wacky World of Gold and Silver

Stocks in this article: GDX SIL RGLD

SIL only goes back to its inception around June of 2010, less than three years ago, and we're currently down to an intraday low of $16.15, a price we haven't seen since the summer of 2010. How does one explain this and does Goldman Sachs really have something to do with all this? I like how Jim Cramer sometimes calls them "Golden Slacks."

All I know is that the precious metals stocks sector's bullish percent index hit "zero" on Friday when Royal Gold (RGLD - Get Report) plummeted more than 4%, to $60.62. Let's look at RGLD's price chart below. It's not suffered as much as others in the sector because it's a royalty-streaming company that, as you can see, has done very well when it comes to its quarterly revenue-per-share growth.

RGLD Chart RGLD data by YCharts

I'm no precious-metals sector expert, but to the best of my knowledge, the last time the gold stock sector's bullish percent index hit zero was in October 2008 and the United States and most of the world was melting down in the worst financial crisis in over 70 years.


The wacky world of gold, silver and the mining stocks became a little weirder this week. One of my old mentors Bill Bonner recently was quoted as saying, "The time to buy gold stocks is when nobody wants to buy them...when even you don't want to buy them," Well Bill, we're finally there!

DISCLOSURE: As of the time of publication the author is long GDX and RGLD but does not own any other stock or ETF mentioned in this article.

Make smarter trading decisions and provide investment ideas that could help make you richer. Bryan Ashenberg does the dirty work so you don't have to!

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs