http://www.nzherald.co.nz/world/news...ectid=11149714
Is this pot starting to boil again? Seems like the temperature is rising. Gold saw a big boost the last time....
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http://www.nzherald.co.nz/world/news...ectid=11149714
Is this pot starting to boil again? Seems like the temperature is rising. Gold saw a big boost the last time....
Much further downwards and gold is gonna be kissing its ass goodbye.
The breakout usually, but not always, occurs in the direction of the original trend, which means down in this case.
Here it comes, the next leg down towards $650.
I've noticed from one of the larger PM diggers (150Moz AuEq) that their AIS Costs aren't too bad ($1093AUD), they have a long reserve life (42 years) and good concentration of assets with 43% in the world's top 30 mines (Lihir and Cadia are in the top 10 mines), and good untapped assets (Wafi/Golpu is in the world's top 10), trimmed down debt (to 29% gearing) and IMHO are in a heathlier state than 6 months ago. They are delivering to guidance, and so I've just come in on NCM (at $10)
Good liquidity and so easy to put in a stop at 990 if need be.
BC
They are great assets BC, I had quite a bit to do with them when Cooky (Peter Cook) owned Wafi & sold to Harmony etc & also Lihir before NCM swallowed it. Lihir has never performed although I have always thought there was great potential. I recommended to them 8 years ago to build a processing plant on the northern coast of Australia & ship their high grade tailings for processing, basically creating a 2nd mine. Lihir is technically challenging due to the geothermal activity. They have to vent the ore to cool about years before mining it. They are also always running out of space due to the mountains of tailings. Back then they were estimating a year mine life after main mine closure just to process the tailings which from memory are around 2gpt! NCM management have really under performed over the last 3-4 years imo. However at around $10 I agree you have to think its pretty good value especially if POG gets a hurry on.
NCM Directors are buying - Mr Greg Robinson purchased 47k this week - that's usually positive.
http://www.asx.com.au/asxpdf/2013110...dzw8d2s733.pdf
SBM not so attractive even at its 5 year low of 45c and with $106m in the bank: its Simberi mine is seriously underperforming, Gwalia is producing lower grade gold than last quarter, and the Group averages a whopping $1320/oz of AISC (Simberi and Gold Ridge have AISC of over $2000/oz - ouch).
On a daily basis gold is a head and shoulders pattern, so looks very likely that this will be the result.
Dow continues rising, gold continues falling. In the last 36 hours silver down 5.3%.
It's possible that if gold goes below about $1,290 we could see some steep falls, it's getting close.
SPDR Gold Trust down 6 tonnes this week.
What will happen when the bull run ends around the same time that tapering is due to start(?)....and I can see that these 2 events look like aligning. The market is always at it's most bullish before the turn, and this extended run must be due to run out of steam. Tapering will not be able to start because a market that is turning bearish could turn into a rout. All of this has to be good for gold. I see the planets converging for gold in 2014. 2013 has been a stellar year for stocks but the previaling conditions will not / cannot exist next year.