A Healthcare Surprise? Gold Drops, Silver Hits 52-Week Low (GLD, SLV, SLW, GDX)

The financial world has been waiting for the decision from the United States Supreme Court on Obamacare and the reaction depends upon which sector and asset class you are following.  We have seen a very mixed reaction in the healthcare sector but we have seen gold and silver fall with the broader equity market.  To tie gold and silver to healthcare seems odd on the surface, but the reality is that investors are still having a very hard time deciding what exactly gold and silver are supposed to represent.

From time to time, gold is a flight to the ultimate safety against a world of currency devaluation.  At other times it is a risk asset.  It is always supposed to be a hedge against inflation, as long as the dollar is not strengthening against other currencies.  And silver, let’s just say that it has been called “The Devil’s Metal” for a reason as it is often considered the more speculative play around gold.

SPDR Gold Shares (NYSEMKT: GLD) is down 1.3% at $150.85 and iShares Silver Trust (NYSEMKT: SLV) is down 1.75% at $25.67.  We would advise traders, investors, and metals speculators that the 50-day moving average on gold’s GLD ETF (at $155.66 today) acted as a drag earlier in June and the trust is almost $5.00 shy of that mark today.

Silver has been seeing an even harder time and the SLV has now broken under the $26 support level. An intraday low of $25.46 went under the 52-week low of $25.65. Silver Wheaton Corp. (NYSE: SLW) is down 2.5% at $25.50 but its 52-week low is $22.94.

Gold miners are following gold south as the ETF of Market Vectors Gold Miners ETF (NYSEMKT: GDX) is down 2.3% at $43.25 and its 52-week low is $39.08.

JON C. OGG