Both precious metals experienced selling pressure as the Obama Administration agreed to consider a proposal that would force Syria to turn over its chemical weapons by allowing international inspectors full access. The move is widely being considered as a delay in taking military action against Syria. The sound of the war drums have aided investments such as gold and oil in recent weeks.
Earlier this week, U.S. Senator Majority Leader Harry Reid canceled plans to schedule a test vote on wether Congress would approve a strike against Syria. He said international discussions were ongoing and it was not important to “see how fast we can do this.” He added that, “We have to see how well we can do this.”
In afternoon trading, shares of the SPDR Gold Trust (NYSEARCA:GLD) fell 1.6 percent while the iShares Silver Trust (NYSEARCA:SLV) dropped nearly 3 percent. Gold miners (NYSEARCA:GDX) Newmont Mining (NYSE:NEM) and Yamana Gold (NYSE:AUY) declined 3.8 percent and 4.9 percent, respectively.
Barrick Gold (NYSE:ABX) shares also declined about 4 percent, despite one hedge fund saying the miner would unlock value by splitting its North and South American assets. Mike Morris, co-founder of Two Fish Management, explains, “Each distinct business unit has unique political environments, geologies, operating costs, reserve profiles, profitability, capital intensities, and growth prospects.” He believes a new Barrick consisting solely of the North American and South American operations could trade at $40 to $50 a share.
Don’t Miss: Do Gun Manufacturers Still Love Politicians?
Follow Eric on Twitter @Mr_Eric_WSCS
If you would like to receive professional analysis on miners and other precious metal investments, we invite you to try our premium service free for 14 days.
Disclosure: Long EXK, AG, HL, PHYSRead the original article from Wall St. Cheat Sheet
Most Popular Slideshows
- Meet the Aussie “Belieber” Who Survived Car Accident When Kept Conscious by A Friend Talking About Justin Bieber [PHOTOS/VIDEO]
- Top 10 Highest-Paid Tennis Athletes as Ranked by Forbes: Roger Federer, Maria Sharapova, Novak Djokovic and More
- "The Great Gatsby" vs. "The Rocket" at AACTA Awards 2014: What You Should Know About Top Feature Films Leading Aussie Oscars Nominations [PHOTOS/VIDEOS]