There's another way of looking at this: Every day the price of RBY stays DOWN at these levels is an opportunity to buy more. We'll look back at this in future and see it only too plainly. I have no more funds unless I buy on margin. It's a test of staying power. On the other hand you can trade for a few cents up and a few cents down every day during this phase - you can go this with almost any stock
That's the problem, doig, you can't just keep buying RBY on dips unless you're selling something else. I've pretty much consolidated my holdings now and have all the RBY shares I care to hold in balance with other stocks I'm not selling or buying more of.
I'm patiently holding RBY for much higher ground and hope it never dips back to my average cost or we're all screwed.
The game has changed IMO look at AUY it had a high of $18 back in march 2008 and is now only $12.70. I remember getting in at $7.50 and out for a few $ and decided big money could be made in juniors. Well I was right to a degree but sold crg and uxg whoops to be concentrated on rby which I was hopeing would be the holy grail of juniors.
It has done well but with soaring gold one would expect all gold stocks would be trading much higher. I expect one of our posters is right about cost of mining has soared as well and I also think the pe's have come down like auy's because investors are much more cautious after the "great fall" we had in the markets.
I do believe that if gold stays $1400 plus all miners will start to crank out great $$ and the funds and public will start to accumulate and miners will lead the way.
But what do I know? I'm on track for another 60% portfolio gain two years in a row but this year has made me work at it.
For over 30 years, Wall Street and its media have portrayed gold as a worthless investment, a "Barbarous relic." The propaganda has been intense, and has shaped the minds of many, including the big money managers and investors.
I think that the vast majority of the market does not believe the rise in gold and silver is real. There are a flood of top callers daily on Financial Television. In my opinion the bearish mentality towards metals and commodities in general is still the prevailing perception. If anything, Wall Street promoted for years that we are entitled to low commodity prices. Any rise was always called manipulation, and the politicians always joined in calling for investigations against the evil speculators. The oil sector is a good example over the last six or so years. People that invest in gold are called all sorts of names on FT. Names like conspiracy nuts, gold bugs, etc...
When the perception of true value changes in the minds of the big money managers, the well run and capitalized miners will see a huge flood of investment.
"For over 30 years, Wall Street and its media have portrayed gold as a worthless investment, a "Barbarous relic." The propaganda has been intense, and has shaped the minds of many, including the big money managers and investors."
In my opinion, you hit on a key point: the people running significant amounts of money tend to be younger mutual fund managers and hedge fund guys; they were educated as Keynesians and don't believe in gold - period.
We need them to start believing and pouring some of that money they control into mining stocks. Until that starts happening we won't see any bubble like price on mining stocks. However, I do think that day will come, just because at some point they won't be able to ignore it. And if gold continues upward the profits some of these miners will be earning will get attention.
The market cap of the mining sector is relatively tiny. Once miners become the place to have your money we'll see stock prices that will seem astounding by today's standards. But I think that could be a couple of years off, at least.
Gold's technical target is $1550, according to the Aden Forecast.
If Wall St. thinks gold's hit it, the next move is......down.
NG is yawning, too.
GRS chart has a gap to fill at $9.24.
RBY chart has a gap to fill at $4.63.
May is the worst month of the year to own gold as for monthly price performance.
Seems to me there are plenty of signs that gold will be down in May.
I still think RBY will touch $4.63 on or about 5/5 to close that gap.
I guess we need to band together and hire someone to explain it.
$1500/oz x 4 million ounces =$6 billion
$6 billion / 214 million shares outstanding = $28.04 worth of gold for EVERY SHARE OUTSTANDING
$28 worth of gold for five bucks and change
and that's why I hold this stock..EVENTUALLY somebody will notice
well - we should at least be valued at $350 per oz of gold
And maybe more on the idea that there could be 10 million plus OZ
4 million times $350 = 1.4 billion
Current market cap = 1.1 billion..
Should be 25% higher at a minimum