All That Glitters… Isn’t Worth As Much Now

Brian Giesen

All That Glitters… Isn’t Worth As Much Now (YahooFinance)

No one was happier to see an end to 2013 than gold investors. For the year, the “formerly” precious metal itself finished down 28.6 percent… But fairing much worse were gold-miner investments, as reflected by the fall of the Market Vectors Gold Miners ETF (GDX), which ended the year down almost 55 percent from where it began. Next, the worst-performing stock within the entire S&P 500 for 2013 was Newmont Mining, which finished the year down 50.9 percent, according to YahooFinance.com. Unfortunately for gold bugs, the outlook for 2014 doesn’t look any better. Unfortunately for gold bugs, the outlook for 2014 doesn’t look any better. J.C. O’Hara, chief market technician at FBN Securities, had this to say about GDX in the year to come, “There’s nothing that shows me that this chart is bottoming any time soon …The next major support level that I see is… around $13.” Yikes! That’s another 43 percent off of today’s $23 share price. Looking ahead, if you’re still holding the barbarous relic, in whatever form, it might be time to unload it.

Wayne Ellis

Wayne Ellis has been involved in the financial publishing industry for more than 15 years. During that time, he has helped to edit, to market and to launch products and services for Ernst & Young, LLC, Fidelity Investments, Agora, LLC, and Eagle Financial Publications. He currently puts his broad-based experience and industry expertise to use as a contributing writer for Eagle Financial Publications. He also is a graduate of Arizona State University.