Top 4 Gold Charts-Breakout or Breakdown?

With Europe’s most recent blast of weakness putting the central banks back in the spotlight, precious metals are sure to follow. That means its a good time to see what some of our favorite gold stocks have been up to. Here is a quick look at my top 4 gold charts with a rundown of company fundamentals. Enjoy!

Junior Gold Miners (GDXJ) has been hit pretty hard over the last year, decoupling from physical gold and recently hitting a new 52-week low. The junior gold miners are a volatile bunch, so using an ETF to invest in the group is a good diversification strategy. But as you can see below, this has still been a painful trade for anyone looking for that big up side.

2-Year Chart

 

 

 

 

 

Aurica Gold (AUQ) is another stock from the junior gold miner category, with a market cap of $2.3 billion. It’s been a volatile ride over here too, with shares trading within 10% of the recent 52-week low. But with the company expected to make close to $1 in earnings this year, AUQ looks cheap from a historical basis and relative to its peers.

12-Month Chart

 

 

 

 

 

Getting into some of the larger gold miners, you’ll see much different movement. That showed up in the world’s largest gold miners, Barrack Gold (ABX), posting sizable gains over the last two years. The company is supposed to make close to $5, so once again, even though shares are bid up on the chart, the valuation picture still trends below historical averages. Take a look.

3-Year Chart

 

 

 

 

 

And finally, an amazing chart in every way, Double Gold (DGP) over the last 5 years. Even though the miners have struggled like crazy, physical gold has been on a huge rip over the last 5 years, magnified by this double ETF.

5-Year Chart

 

 

 

 

 

Author

Michael Vodicka is the president and founder of the Vodicka Group, Inc., a Registered Investment  Advisor  (RIA). He specialized in trading fixed-income derivatives at the Chicago Board of  Trade before  spending five years managing equity portfolios for a private investment research company.

Michael graduated from the University of Kansas with a degree in business communications and is registered with the State of Illinois and the SEC (Securities and Exchange Commission) as a Licensed Investment Advisor (Series 65).

ABOUT THE AUTHOR

Michael Vodicka

Michael Vodicka is the president and founder of the Vodicka Group Inc., a licensed investment advisor (Series 65) and a financial journalist.