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Tickers in this Article: AUQ, GFI, AU, SA, SVM, RGLD, PAAS
The market is having a good day so far: the Nasdaq has moved up 0.2%; the S&P 500 has climbed 0.1%; and the Dow is up 0.2%.

The Gold and Silver sector (SLV) is down 0.3% on a good day for the market overall. The biggest movers in the sector so far are:
CompanyMarket CapPercentage Change
AuRico Gold (NYSE:AUQ)$1.97 billion-19.2%
Gold Fields Limited (NYSE:GFI)$8.8 billion+3%
AngloGold Ashanti Limited (NYSE:AU)$12.11 billion+2.2%
Seabridge Gold, Inc (NYSE:SA)$733.5 million+1.8%
Silvercorp Metals Inc (NYSE:SVM)$1.06 billion-1.6%
Royal Gold (Nasdaq:RGLD)$5.18 billion+1.4%
Pan American Silver Corp (Nasdaq:PAAS)$2.78 billion-1.1%
Broker Summary: E-Trade Financial

AuRico Gold (NYSE:AUQ) is currently trading at $5.64 per share, after a steep drop of 19.2%. The company's volume is currently 7.9 million shares for the day, 3.9 times its current daily average. If a stock is trading on low volume, then there is not much interest in the stock. On the other hand, if a stock is trading on high volume, then there is a lot of interest in the stock. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. The easy-to-calculate debt ratio is helpful to investors looking for a quick take on the leverage for a company. AUQ's debt ratio of 29.2% is on the low side. In other words, the company is less sensitive to changes in business or interest rates since less of its cash flow is dedicated to paying off loan expenses. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.

After an increase of 3%, Gold Fields Limited (NYSE:GFI) has reached a current price of $12.52. The company's volume for the day so far is 2.5 million shares. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. The debt-equity (D/E) ratio is a measurement of how much suppliers, lenders, creditors and obligors have committed to the company versus what the shareholders have committed. GFI's debt-equity ratio of 33% is on the low end. This shows that the company's assets are financed primarily through equity. The D/E ratio percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.

AngloGold Ashanti Limited (NYSE:AU) is at $32.12 per share after an increase of 2.2%. The company's volume is currently 623,326 shares for the day, 0.4 times the current three-month average. Volume indicates the level of interest that investors have in a company at its current price. Valuation ratios include the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield. The P/E ratio has been used for ages by analysts and still remains one of the most relevant pieces of stock valuation. AU has a P/E ratio of 9.7. A high or low P/E ratio is not good or bad in and of itself, but a company trading with a high P/E ratio must continue to post strong financial performance or its stock price is likely to fall. SEE: The P/E Ratio: A Good Market-Timing Indicator

After rising 1.8%, Seabridge Gold, Inc (NYSE:SA) is currently trading at a share price of $17.19. The company is trading at a volume of 177,184 shares. This is about the same trading activity as there was yesterday. If a stock price makes a big move up or down, volume lets us know the significance of that move. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. The price/book value ratio provides a way of evaluating whether a stock is relatively cheap or expensive. SA has a P/B ratio of 3.41 which shows that its share price is higher than its book value. This high share price relative to asset value is likely to indicate that the company has been earning a very high return on its assets. P/B has its shortcomings but is still widely used as a valuation metric, more relevant for use by investors looking at capital-intensive or finance-related businesses, such as banks; book value does not carry much meaning for service-based firms with few tangible assets. SEE: Investment Valuation Ratios: Price/Book Value Ratio

Currently trading at $6.08 per share, Silvercorp Metals Inc (NYSE:SVM) has fallen 1.6%. At 363,039 shares, the company's volume so far today is 0.2 times the current daily average. The trading volume for a stock indicates the level of investor interest. While investment valuation ratios are useful tools in estimating the attractiveness of an investment, remember that it is important to look at a company's historical performance and compare the company ratios with its competitors and industry overall. Dividend yield is a way to measure how much cash flow you are getting for each dollar invested in an equity position - in other words, how much "bang for your buck" you are getting from dividends. SVM has a low dividend yield of 1.6%. This could indicate that that the stock is overpriced or that future dividends might be higher. A higher dividend yield may indicate a risk of a fall in the price of the security, or a cut in the level of dividend payments, either of which would have the effect of dropping future returns. SEE: Investment Valuation Ratios: Dividend Yield

Royal Gold (Nasdaq:RGLD) has risen 1.4% to hit a current price of $89.22 per share. So far today, 224,283 shares have changed hands. In technical analysis, trading volume is used to determine the strength of a market indicator. A company's investment value can be estimated using valuation ratios such as the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield. The price/sales ratio measures a company's stock market price by its revenues. RGLD's P/S ratio of 17.46 is on the high side. In young companies, a high P/S ratio is a sign of sales growth that is expected to turn into earnings and cash flow. It is important to keep in mind when looking at the P/S ratio that just because a company is generating revenues, this does not mean that the company is profitable, and in the long run, profits drive stock prices.

Pan American Silver Corp (Nasdaq:PAAS) has decreased to $18.07 per share, a 1.1% fall. At 1.1 million shares, the company's volume so far today is consistent with its current three-month average. As a stock moves up or down, it is important to pay attention to the trading volume. This indicates the level of interest: the higher the volume, the more the interest. Investment valuation ratios can be very useful in determining the value of a stock, but it is very important to keep in mind that while some financial ratios have general rules (or a broad application), in most instances it is a prudent practice to look at a company's historical performance and use peer company/industry comparisons to put any given company's ratio in perspective. The debt ratio gives users a quick measure of the amount of debt that the company has on its balance sheets compared to its assets. PAAS has a low debt ratio of 20.1%. This indicates that the company engages in conservative financing with opportunities to borrow in the future at no significant risk. However, one thing to note with this ratio: it isn't a pure measure of a company's debt (or indebtedness), as it also includes operational liabilities, such as accounts payable and taxes payable.

The Bottom Line The nature of the market is such that stocks will have good days and bad days. Daily stock performance should be weighed against historical performance and put in context of the market overall. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.

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