$50bn in Market Cap – GONE!

We’re quickly approaching the one-year anniversary since gold prices peaked. On September 6, 2011 gold futures made a high of $1,942.30. The popular gold ETF, GLD, peaked the same day at $185.85.

Gold certainly lost its luster over the last twelve months… making now a good time to survey the damage in gold stocks.

I’ve prepared a percent-change chart of GLD, along with the top five gold stocks (based on market cap). The suspects include:

1) Barrick Gold Corporation (NYSE: ABX), with a market cap of $38 billion

2) Goldcorp Inc. (NYSE: GG), with a market cap of $32 billion

3) Newmont Mining Corp. (NYSE: NEM), with a market cap of$24 billion

4) Yamana Gold, Inc. (NYSE: AUY), with a market cap of $12 billion

5) AngloGold Ashanti, Ltd. (NYSE: AU), also with a market cap of $12 billion

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Taken together, these five companies are now worth about $118 billion. But of course, they were worth a lot more just a year ago.

As you can see, all five gold stocks are negative, along with GLD that has lost a little more than 12%.

In total, these five companies lost about $50 billion in market cap, or roughly 30% of their value.

That’s one bad year! And it’s certainly not indicative of a strong, healthy gold market.

We’ll continue to search for the best profit opportunities related to the shiny yellow metal so many adore. But it will likely be on the SHORT side!

If you haven’t done so already read the Survive & Prosper issue on “What To Do: Buy Gold or Sell Gold.”



Adam O’Dell

Using his perfect blend of technical and fundamental analysis, Adam uncovers investment opportunities that return the maximum profit with minimum risk.