GDX $27.27 Gold Mining Capitulation

Gold tested $1320 on Monday 15th April with the Gold Mining ETF GDX closing below 30 this week, the lowest close for 3 years. Selling pressure is mounting with H&S target of 15. In 2008, gold Mining fell 60% from the March high to the low 8 months later in October 2008. Similar projections from September 2012 High of 54 implies a low 22, another 20% drop

Smith and Williamson Gold 210p 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 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 fall below 200p and possibly hit 100p this year to provide a great buying opportunity.

Top holdings include
GG $27 Target $20
EGO $6.60 Target $4
AEM $31 Target $15
FRES £11 Target £5