Gold Fever has been the Ruin of Many a Po' Boy

Gold surged on Thursday, with the SPDR Gold Trust (NYSE: GLD) gaining 1.7%, I believe partly due to the deep drop of the PMI Services Index. However, the measure is less reliable than ISM’s measure of the service sector, which showed nothing worth our alarm. Gold benefits from a deteriorating economy, but the majority of signals are not indicating that scenario. The other catalyst serving gold Thursday was likely the day old influence of a rumor that the ECB may be tiring of negative interest rate policy. However, the desires of the conservative German Finance Ministry do not an ECB decision make. These two issues have had some influence on the dollar, with the greenback drifting since they surfaced. I suggest greed-driven gold fever has momentum chasers bidding up gold on less than adequate catalysts now. It’s the type of thing that causes securities to overextend runs up or down, and right now it’s up. It’s hard to fight the tide, but I expect the tide will change soon. Be careful, because gold fever has been the ruin of many a poor boy. See this full report on gold fever here.

Precious Metal Securities	03-04-16
SPDR S&P 500 (NYSE: SPY)	+0.4%
SPDR Gold Trust (NYSE: GLD)	+1.7%
iShares Gold Trust (NYSE: IAU)	+1.7%
iShares Silver Trust (NYSE: SLV)	+1.8%
Direxion Daily Gold Miners Bull 3X (NYSE: NUGT)	+12.3%
Direxion Daily Gold Miners Bearish 3X (NYSE: DUST)	-11.7%
Market Vectors Gold Miners (NYSE: GDX)	+4.0%
Market Vectors Junior Gold Miners (NYSE: GDXJ)	+6.5%
Goldcorp (NYSE: GG)	+4.1%
Newmont Mining (NYSE: NEM)	+2.2%
Randgold Resources (Nasdaq: GOLD)	+1.5%
Barrick Resources (NYSE: ABX)	+2.4%
Yamana Gold (NYSE: AUY)	+7.8%
Gold Fields Ltd. (NYSE: GFI)	+4.7%
Silver Wheaton (NYSE: SLW)	+4.0%
Coeur Mining (NYSE: CDE)	+12.3%

DISCLOSURE: Kaminis is short GDX. Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only. Article should interest investors in precious metals stocks: Goldcorp (NYSE: GG), Agnico-Eagle Mines (NYSE: AEM), Allied Nevada Gold (AMEX: ANV), AngloGold Ashanti (NYSE: AU), AuRico Gold (NYSE: AUQ), Aurizon Mines (AMEX: AZK), Barrick Gold (NYSE: ABX), Brigus Gold (AMEX: BRD), Charles & Covard (Nasdaq: CTHR), Claude Resources (AMEX: CGR), Commerce Group (OTC: CGCO.PK), Compania Mina Buenaventura S.A. (NYSE: BVN), DRDGOLD (Nasdaq: DROOY), Eldorado Gold (NYSE: EGO), Entrée Gold (AMEX: EGI), Exeter Resource (AMEX: XRA), Gold Fields (NYSE: GFI), Gold Reserve (AMEX: GRZ), Gold Resource (Nasdaq: GORO), Golden Eagle Int’l (OTC: MYNG.PK), Golden Star Resources (AMEX: GSS), Great Basin Gold (AMEX: GBG), Harmony Gold (NYSE: HMY), IAMGOLD (NYSE: IAG), International Tower Hill Mines (AMEX: THM), Jaguar Mining (NYSE: JAG), Keegan Resources (AMEX: KGN), Kimber Resources (AMEX: KBX), Kingold Jewelry (Nasdaq: KGJI), Kinross Gold (NYSE: KGC), Midway Gold (AMEX: MDW), Minco Gold (AMEX: MGH), Nevsun Resources (AMEX: NSU), New Jersey Mining (OTC: NJMC.PK), Newmont Mining (NYSE: NEM), North Bay Resources (OTC: NBRI.OB), Northgate Minerals (AMEX: NXG), NovaGold Resources (AMEX: NG), Richmont Mines (AMEX: RIC), Royal Gold (Nasdaq: RGLD), Rubicon Minerals (AMEX: RBY), Seabridge Gold (AMEX: SA), Solitario Exploration and Royalty (AMEX: XPL), Tanzanian Royalty Exploration (AMEX: TRE), Thunder Mountain Gold (OTC: THMG.OB), U.S. Gold (NYSE: UXG), Vista Gold (AMEX: VGZ), Wits Basin Precious Metals (OTC: WITM.PK), Yamana Gold (NYSE: AUY), Coeur d’Alene Mines (NYSE: CDE), Endeavour Silver (NYSE: EXK), Hecla Mining (NYSE: HL), Mag Silver (AMEX: MVG), Mines Management (AMEX: MGN), Silver Standard Resources (Nasdaq: SSRI), Silver Wheaton (NYSE: SLW), SPDR Gold Trust (NYSEArca: GLD), Market Vectors Gold Miners ETF (NYSEArca: GDX), iShares Silver Trust (NYSEArca: SLV), ProShares Ultra Silver (NYSEArca: AGQ), ProShares Ultra Short Silver (NYSEArca: ZSL), Great Panther Silver (AMEX: GPL), Silvercorp Metals (NYSE: SVM), Paramount Gold and Silver (AMEX: PZG), Pan American Silver (Nasdaq: PAAS) and First Majestic Silver (NYSE: AG).