The Motley Fool

These gold miners’ share prices are getting SLAMMED today

It’s been a good day for investors in many of Australia’s blue chip shares. But not so for the gold miners.

While the Australia and New Zealand Banking Group (ASX: ANZ) share price has jumped 0.5%, and the BHP Billiton Limited (ASX: BHP) share price is up 0.8%, a number of the gold miners have been poleaxed. Check out some of these share price movements for the day:

  • The Beadell Resources Ltd (ASX: BDR) share price has fallen 9.4%
  • The Evolution Mining Ltd (ASX: EVN) share price has fallen 5.8%
  • The St Barbara Ltd (ASX: SBM) share price has been slammed 11.2%
  • The Silver Lake Resources Limited. (ASX: SLR) share price is down 9.5%
  • And the Newcrest Mining Limited (ASX: NCM) share price has shed 3.6%.

That’s not all. Independence Group NL (ASX: IGO), Northern Star Resources Ltd (ASX: NST) and Regis Resources Limited (ASX: RRL) share prices are all sitting deep in the red as well.

These heavy declines appear to have stemmed from a relatively small decline in the spot price of gold. It peaked at around US$1,263 an ounce earlier but has since slipped back to US$1,253. It was by no means a big fall, but perhaps enough to spook investors all the same.

The gold price has helped some of the gold miners to deliver substantial shareholder returns so far in 2017, with a weaker US dollar helping to push its price higher.

But given how far it has rallied this year, and the potential for it to fall if the US dollar begins to strengthen again (or if the US Federal Reserve continues to hike interest rates), investors are right to be cautious.

If a US$10 decline in the price of gold can cause the kind of havoc as experienced by shares of the gold miners today, investors should ask themselves whether they would be comfortable holding onto the shares if gold were to fall, say, 5% or 10%.

If you think you’d lose sleep at night stressing about that, the stocks mentioned above mightn’t be for you…

Forget Gold. Here's The 1 Thing Every Investor Should Know About Buffett’s Portfolio

You’ve probably heard a lot about billionaire investor Warren Buffett. After all, a herd of analysts and journalists has tracked his every move – for decades. Yet here’s something you may not know...

Simply click here to learn more.

Motley Fool contributor Ryan Newman has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!