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Tickers in this Article: HMY, SA, SSRI, PAAS, RGLD, GG, NEM
It's been a bad day for the market after the morning's trading. The Nasdaq has slipped 0.8%; the S&P 500 has decreased 0.7%; and the Dow is trading down 0.7%.

The Gold and Silver sector (SLV) is currently ahead of the overall market, down only 0.4%, and its biggest movers are currently:
CompanyMarket CapPercentage Change
Harmony Gold Mining Co (NYSE:HMY)$3.71 billion-1.9%
Seabridge Gold, Inc (NYSE:SA)$850.8 million-1.7%
Silver Standard Resources Inc (Nasdaq:SSRI)$1.33 billion-1.6%
Pan American Silver Corp (Nasdaq:PAAS)$3.32 billion-1.4%
Royal Gold (Nasdaq:RGLD)$5.81 billion+1.3%
Goldcorp Inc (NYSE:GG)$37.62 billion-1.2%
Newmont Mining (NYSE:NEM)$27.78 billion-1%
Broker Summary: TD Ameritrade Thinkorswim

After a decline of 1.9%, Harmony Gold Mining Co (NYSE:HMY) has hit a share price of $8.43. The company's volume for the day so far is 658,100 shares. If a stock price makes a big move up or down, volume lets us know the significance of that move. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. There are generally two price/earnings ratios calculated: the first, called the trailing Price/Earnings ratio, is calculated using the previous years actual earnings; the second, called forward Price/Earnings ratio, is calculated using the next year's estimated earnings. HMY has a P/E ratio of 11.5. 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: How To Use The P/E Ratio And PEG To Tell The Future Of A Stock

Slipping 1.7%, Seabridge Gold, Inc (NYSE:SA) is currently trading at $19.24 per share. So far today, 147,453 shares have changed hands, consistent with the volume from yesterday while it was 299,908 shares yesterday. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. 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, often expressed simply as "price-to-book", provides investors a way to compare the market value, or what they are paying for each share, to a conservative measure of the value of the firm. SA has a P/B ratio of 3.82 which 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. 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: Investment Valuation Ratios: Price/Book Value Ratio

Silver Standard Resources Inc (Nasdaq:SSRI) has fallen 1.6% and is currently trading at $16.15 per share. This morning, the company's volume is 390,768 shares. This is 0.3 times its average daily volume. 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. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The price/sales ratio is used for spotting recovery situations or for double-checking that a company's growth has not become overvalued. SSRI has a high P/S ratio of 7.49. This could be a good sign if the share price increases. All things being equal, a low P/S ratio is good news for investors, while a very high one can be a warning sign.

Currently trading at $21.52 per share, Pan American Silver Corp (Nasdaq:PAAS) has fallen 1.4%. The company's volume is currently 1.2 million shares for the day, 0.3 times its average over the past three months. The trading volume for a stock indicates the level of investor interest. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. 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. The debt ratio for PAAS is a low 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.

After an increase of 1.3%, Royal Gold (Nasdaq:RGLD) has reached a current price of $99.88. The company is currently trading a volume of 471,577 shares. Volume indicates the level of interest that investors have in a company at its current price. 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. One of the most important estimates of stock market valuation is the price/earnings ratio (P/E ratio). RGLD's P/E ratio is 61.3. From the investor's perspective, a stock with a lower ratio is relatively cheaper than a stock with a higher ratio. SEE: Can Investors Trust the P/E Ratio?

Falling 1.2%, Goldcorp Inc (NYSE:GG) is currently at a share price of $45.85. So far today, the company's volume is 2.2 million shares, on pace to finish the day below yesterday's volume of 6.2 million 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. Valuation ratios like 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 are useful in determining how attractive a potential or existing investment is. The debt-equity (D/E) ratio is a leverage ratio. GG's debt-equity ratio of 3% is on the low end. This shows that the company's assets are financed primarily through equity. This easy-to-calculate ratio provides a general indication of a company's equity-liability relationship and is helpful to investors looking for a quick take on a company's leverage.

At $55.96, Newmont Mining (NYSE:NEM) has slipped 1%. The company's volume for the day so far is two million shares. This is 0.2 times the average daily volume. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. In making a decision about a potential or existing investment, valuation ratios are useful as a basis for seeing whether the stock price is too high, reasonable, or a bargain. The capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. The capitalization ratio for NEM is 36.3%. 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 On any given day, a particular stock may see positive or negative change in its share price. Daily stock performance should be weighed against historical performance and put in context of the market overall. 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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