September 23, 2011 (Chinavestor) Zijin Mining Group Co. Ltd. (HKG:2899), the largest Chinese gold miner, was among the worst components of the Shanghai Composite Index (SHA:000001) as well as the Hang Seng Index (INDEXHANGSENG:.HSI) on Friday. Hong Kong listed H-shares of the company fell 7.78% on Friday capping a week of steep losses. The stock is trading at HK$2.49 at new 52 week lows thanks to a 25% plunge this week alone! The stock is off 33.6% for the month as well.
So much of the gold bulls... Arguments that gold will climb to $2,000/ounce have no bite.
So where do investors put money instead? There is another important chart to consider: the exchange rate of the Euro vs. the Greenback.
Exchange rate of the Euro/US Dollar, August 23 - September 22, 2011
The dollar has firmed up over 6.25% in the last month alone!
A stonger dollar means lower commodity prices, something that we see on the price of aluminum, oil etc. The good news is that cheaper commodities bode well for the U.S. and the global economy as well, something that is one good piece of information during these turbulent times.