Gold tested $1600 on Friday 15th Feb with the Gold Mining ETF GDX closing below 40, the lowest close for 3 years. Selling pressure is mounting and a further 20% fall to 32 would not be a surprise for me over the next few months. In 2008, gold Mining fell 60% from the March high to the low 8 months later in October 2008.
Smith and Williamson Gold 286p is a fund I use to invest in the Mining shares. The fund has been on a Sell signal since November price fell below 330p. With the sharp sell of Gold last week and the weak summer season coming up, it is prudent to wait for the market to find a bottom, before adding to any long term holdings. Looking for SW Gold to hit 220p sometime between May-July.
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