Big News on The Gold Stocks and Notes on The Juniors You Need to Know
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Did you know Trivia - Here is my assessment of the current gold share market.
The gold price is taking a much needed correction and bullion corrections are almost always severe and volatile and the shares follow.
Obviously gold coming down could mean less profits and cash flow for companies and this unnerves some holders to sell.
With major investment banks projecting a long term gold price of $700, some portfolio managers that usually invest in GE or IBM are thinking that this may be the start of a major downturn. They are therefore selling.
These managers don’t understand that 95% of the mining analysts have never got it right on the metal prices the 35 years I have been investing in the mines. Analysts are conservative and they are cautious. They are usually from a geology or engineering background. What do they know about global economics? And if they are economists – god help us.
Lot’s of new money has come into the gold mining sector the past year and this is money that is not philosophically tuned into gold as money and most think the Fed can actually manage the currency and printing money is the normal thing to do. They saw gold going up and the stocks having positive momentum and this made sense for them to buy. When this momentum stopped they were ready to sell.
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Friday 25 April, 2008 09:19 PM |
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