Gold stock wiping me out

[rescue41]

Hello to everyone and I hope all is well. This is my first time posting as I am new to the forum. I am very frustrated as all I heard recently is "buy gold! " , "Gold is up today 4.8%" Why is it then the I am getting killed with the one gold stock I bought on 9-29-08. I bought 500 shares of Barrick Gold(ABX) and since have lost 22.65% ! What gives??? Any insight on this would be very much appreciated. Thank you in advance.

[mark_brantford]

commodities killed. dollar strong. I would hold. What hasn't been killed lately?

[john_for_u80]

Hello to everyone and I hope all is well. This is my first time posting as I am new to the forum. I am very frustrated as all I heard recently is "buy gold! " , "Gold is up today 4.8%" Why is it then the I am getting killed with the one gold stock I bought on 9-29-08. I bought 500 shares of Barrick Gold(ABX) and since have lost 22.65% ! What gives??? Any insight on this would be very much appreciated. Thank you in advance.

I am not sure as what to do in your situation as I have not given any thought as what would gold do but play a game(pairs trading)---> You are holding a loser(Gold), then try and play with DZZ(double ultra short gold) if you think gold pulls back after rallying, short gold with DZZ.

Look at the chart and try to cover your loses playing with DZZ by day trading or short term trading!

Try to balance your trade and cover some money on DZZ.

[lilmikeybear]

I think he is saying as of late, Gold is up and most gold stocks are down. About a month or so ago when the market went down, gold and gold stocks went up. Now gold stocks just seem to open higher when gold is up and then die later in the day.

For example. on 9/15 i bought drooy for 4.38 when gold was 772.00 gold went to around 900 give or take. I sold at 5.90 when it was close to 900.
Now gold is 880 and drooy is 4.00 and it hit new lows yesturday even though gold was up yesturday. I think the same can be said for auy.

So is this the new standard for gold stocks? Gold up, stock down. Gold down, stock goes down even further?

I know this isnt for all gold stocks like GLD but it seem the trading of alot of gold stocks dosent follow the price of gold, currently.

[xpiratesxcorex]

I agree with John with pair trading. If you go long fedex and it's not working short UPS. This will allow you to make some money on the way down and soften the blow of your position until fedex rallies again for you to sell. Just remember to keep a shorter term mentality with the pair and always take the profit on it.

[John Law]

I have to think that this agreement by the Fed to backstop the short-term bond market is good for gold. I hold some AUY, and it is up pretty good today.

[PhoMan]

IMO when investing in gold, it's better to invest in the gold index as supposed to the gold mining company. I use DGP to long gold. DGP/DZZ are similar UYG/SKF.

[freakscene]

what ever happened to just plain old owning gold?

i'd play it all of the above.

AUY
GLD
coins and jewelery

ive been buying coins for almost a decade+, and the worse the "crisis" gets, the more appealing they look, and thankful i am

[GDFLS]

Well seems like in this market most stocks are being taken down and hard. No one wants the paper in companies that deals with PM, seems like the want the physical stuff.

So, long term I think stocks in PM companies will rebound well, but the PM prices may continue to outpace the stocks in PM companies.

[John Law]

AUY looking good today, up 12% so far. At least something is going up.

:santaclaus: