Precious metals sector is under pressure yet again. In early morning trade, Gold (NYSE: GLD) broke below its important technical support, triggering stop losses. At one point, the yellow metal was down 5%. Those of you who have subscribed to the newsletter would recall important warnings that Gold’s recent two year consolidation was not a basing pattern.
Chart Of The Day: 5 year compound return for miners is lowest in modern history
Source: Short Side Of Long
Golds sell off impacted the overall sector, including miners. Gold mining index (NYSE: GDX) is currently down 8%. Furthermore, the index has lost almost 50% over the last 12 months. Barrick Gold Corporation (NYSE: ABX), one of the worlds biggest mining companies, is currently selling off by as much as 12.5%. Shockingly, Barrick has lost almost 45% in 2 months; while Silver Wheaton (NYSE: SLW), wordless biggest silver miner, is down almost 40% in in the same time period.
Finally, I leave you with a chart, which shows that Philadelphia Gold & Silver Index is approaching important support levels dated all the way back to early 2000’s. As a sidetone, the 5 year compound rate of return for the Precious Metals mining index is now the lowest in its modern history (since early 1980s).
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