

Ask HN: Why are gold stocks so low right now? - cadalac

I noticed that Yamana and Barrick have really low stock prices right now. I'm not someone who buys stocks very often, but this is pretty tempting. Anyone know why they're so low right now?
======
nicholas73
There is a perception that gold is going to hit a downtrend, especially after
the sharp sell off last month, which didn't fully recover. The dollar is
getting stronger and mining costs are still high. Gold miners' margin is
dependent on gold price, which means that a fall in gold can wipe out profits.
Gold stocks typically trade many times its book and earnings, so they are
sensitive to gold price.

------
kohanz
Obviously they are dependent on the price of gold, which is down mostly due to
the strong US dollar and the stock market performing well.

