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Tickers in this Article: HMY, SSRI, ABX, SA, AG, AU, BVN
The Nasdaq is down 0.2%, the S&P 500 is unchanged and the Dow has moved little after the morning's trading.

The Gold and Silver sector (SLV) has fallen 0.6% despite little change in the market overall. The biggest movers in the sector so far are:
CompanyMarket CapPercentage Change
Harmony Gold Mining Co (NYSE:HMY).05 billion-4%
Silver Standard Resources Inc (Nasdaq:SSRI).17 billion-2.7%
Barrick Gold Corporation (NYSE:ABX).75 billion-1.8%
Seabridge Gold, Inc (NYSE:SA)5.2 million-1.7%
First Majestic (NYSE:AG).2 billion-1.4%
AngloGold Ashanti Limited (NYSE:AU).22 billion-1.1%
Compania de Minas Buenaventura SA (NYSE:BVN).75 billion-1%
Broker Summary: Fidelity Online Brokerage

Falling 4%, Harmony Gold Mining Co (NYSE:HMY) is currently at a share price of $9.04. This morning, one million shares have been traded, consistent with the volume from yesterday. Volume is an important indicator because it indicates how significant a price shift is. A wide array of ratios can be used by investors to estimate the attractiveness of a potential or existing investment and get an idea of its valuation. One of the favorite tools of many value investors is analyzing price/book value ratios, as it provides a measure of the underlying value of a company's assets as compared to the valuation of its equity. HMY's P/B ratio of 0.9 indicates that its share price is lower than its book value. Industries that require more infrastructure capital (for each dollar of profit) will usually trade at P/B ratios much lower than those that don't. A weakness of the P/B value ratio is that while the price component is easily determined by looking at the stock quote, the book value component is more difficult to estimate and more open to individual interpretation and analysis. SEE: How Buybacks Warps The Price-To-Book Ratio

Silver Standard Resources Inc (Nasdaq:SSRI) is down 2.7% to reach $14.06 per share. The company's volume for the day so far is 335,863 shares. The trading volume for a stock indicates the level of investor interest. 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 is used for spotting recovery situations or for double-checking that a company's growth has not become overvalued. The P/S ratio for SSRI is 7.49, which is relatively high. This could be a good sign if the share price increases. It is important to compare P/S ratios for companies in the same industry, as ratios can vary quite widely for companies in different industries.

Barrick Gold Corporation (NYSE:ABX) is currently trading at a share price of $37.06, a 1.8% decline. The company's volume for the day so far is 3.4 million shares, in keeping with the average volume over the past three months. Volume is an important indicator in technical analysis as it is used to measure the worth of a market move. If the markets have made a strong price move either up or down the perceived strength of that move depends on the volume for that period. The higher the volume during that price move the more significant the move. 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 easy-to-calculate debt ratio is helpful to investors looking for a quick take on the leverage for a company. ABX's debt ratio is 51.6%. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.

Seabridge Gold, Inc (NYSE:SA) has fallen 1.7% and is currently trading at $16.40 per share. This morning, the company's volume is 177,012 shares. This is 0.6 times the current daily average. A stock's volume conveys how excited investors are about it. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. The price/book value ratio is calculated by dividing the current stock price by the company's book value per share. SA's P/B ratio of 3.25 shows that its share price is higher than its book value. It is important to take the company's debt into account when using the P/B ratio as debt can boost a company's liabilities to the point where they wipe out much of the book value of its hard assets, creating artificially high P/B values. One problem with the P/B value ratio is that it can be difficult to calculate the true book value of a company, so investors should be aware that many measures of book value may provide only a rough estimate, and should be taken with a grain of salt. SEE: Investment Valuation Ratios: Price/Book Value Ratio

Slipping 1.4%, First Majestic (NYSE:AG) is currently trading at $18.81 per share. At 242,863 shares, the company's volume so far today is on pace to reach yesterday's volume of 492,530 shares. Volume indicates the level of interest that investors have in a company at its current price. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. The price/sales ratio measures a company's stock market price by its revenues. AG's P/S ratio of 6.51 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. All things being equal, a low P/S ratio is good news for investors, while a very high one can be a warning sign.

AngloGold Ashanti Limited (NYSE:AU) has decreased to $31.36 per share, a 1.1% fall. So far today, the company's volume is 917,599 shares. 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. 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. The debt ratio measures the leverage of a company, and a company's leverage is a good way to assess risk. The debt ratio for AU is 50.6%. 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.

Currently trading at $34.04 per share, Compania de Minas Buenaventura SA (NYSE:BVN) has fallen 1%. At 194,626 shares, the company's volume so far today is 0.2 times its current three-month average. High volume indicates a lot of investor interest while low volume indicates the opposite. Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. The capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. The capitalizion ratio of 3.4% is on the low end. A very low capitalization ratio might be a sign that the company is stagnating and reducing the potential earnings for shareholders. This ratio is considered to be one of the more meaningful of the "debt" ratios - it delivers the key insight into the use of leverage by a company.

The Bottom Line The nature of the market is such that stocks will have good days and bad days. Paying close attention to the previous ratios will help you identify key times to adjust your strategy. Keep in mind that all these ratios should be compared against historical numbers and industry information in order to get a more complete picture.

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