- Fear is returning - Gold oversold and the stock market is overbought - People covering shorts in Gold and the Gold Miners - Stocks are being sold/shorted - Notice mainly the PRODUCERS are up today - this means people want security Hopefully you accumulated unheadged, good margin, producers over the last few months I hope you also purchased a portion of physical metal at 1550-1600 Volatility is possible (a down after ups) in the short term - but probably trending up from here on for the rest of the year. REMEMBER Smart money doesn't care about resource ounces per se They care about resource ounces provable (through BFS/DFS) to be extracted at a healthy profit (This is an example not a recommendation) Cerro can prove they can monetize their ounces at a profit of US$1000 per ounce ($666 for Cerro and $333 for Goldcorp under current JV) and the strip ratio is less than 1 (meaning ore is from surface) - they wont have any issues getting funding (or shouldn't). Another company can prove they can monetize their ounces at $900 per ounce ($700 profit) BUT they have a high strip ratio and need to dig 40m to get to the first ore and ramp up will take 1 year to get to the high grade ore - (they will find it harder to get funding) You gotta think like an economic geologist/banker not a greedy gold bug. Dont try to pick the bottom - try to pick the best value (none of the above is advice - just my person opinion and comments)
Here is what I got so far this correction SLR, CJO, AXE, NCM, LNC, ALK Here is what I missed so far EVN, TRY, KCN, CCU Here is what Im thinking about - trying to think outside my norm BHP, MZM, TLG, OZL, RHL, IXI, OOO, RDV, ENY Again no recommendations - just letting everyone know what I'm up to - any input or discussion is welcome
I'm pretty much locked and loaded, looking forward to see what happens this afternoon and tonight. Hopefully its good. edit articles like this might help. http://www.smh.com.au/business/markets/double-happiness-for-gold-mining-stocks-20120604-1zrm5.html
Goin to wait until after my tax return comes back , maybe 6 weeks or so , then i will be able to sink 5000 into NCM Thinking about putting 2000 into FML within the next couple days , whats your opinion about them Sanchez?
LOL and how many people are likewise sweating on their tax return for a good cheap purchase or two (or ten). I don't fancy our chances of getting "cheap" by tax return time though. Pity.
