That's hilarious as JP Morgan has an overweight rating with a target of $10.
I am confident that I will make money on this trade. My average price is much lower now than my previous trade. The low for gold was 1180. I am even more confident in the long term price appreciation for gold. If it takes longer than anticipated, I'll collect my dividends and wait.
Really?? I guess you don't follow this stock. I just completed my trade a few weeks ago at 9.40. Did you miss that move from 5.70 to 9.50?
You're the sucker who doesn't understand that the world economies are going to crash harder than anyone's ever seen. You'll be holding paper equities that you can wipe your #$%$ with. Mark these words!
The explanation is above in my post. You apparently can't understand what I'm saying. That's not my problem. As I said, look it up and you will find it to be FACT. What more do you need?
"The underlying reason is because the miners have the reserves in the ground which gives the leverage to the price of the metal."
If you have x number of tons of gold in the ground, the value of that gold also goes up with the price of gold. Therefore, the miners have leverage to the price of gold. Does this make sense?? There's no other way to explain it. You stating it's "baseless" is ignorant at best. It's fact.
Look it up on google.. if you understand this market you would know this. This is the reason traditionally that people buy the miners vs the metal. Though, this scenario has not been playing out as it has in the past. The underlying reason is because the miners have the reserves in the ground which gives the leverage to the price of the metal.
Well, that's the thing. If you look closely, you'll see that the world market improvement is marginal at best and could just be rolling over again now. China seems stable, but outside of China, there's very little growth and huge amounts of stimulus. We are certainly closer to deflation than improving world economies. The reason the interest rates are rising is because the fed's policies are not working. You print $4 trillion and there's no inflation? (on record of course). Corporations are hoarding cash and have been cutting expenses for the past 5 years. That game is just about over. They can only manipulate earnings for so long. The writing's on the wall.
It was quite obvious to me that the taper wasn't happening when the dollar was dropping for weeks and the equity market was having one of its biggest moves of the year. Why were the professionals on the wrong side of this when the writing was on the wall? Even today, after what happened yesterday, Goldman comes out and says the taper is just delayed a few months because the economy will take off yada, yada, yada. The economy is terrible! If you read the reports, it's plain to see for anyone that takes the time to read them and can understand them.
The stocks usually lead the metal price which was also what we were seeing. This was another strong indication for me. The bottom line is gold is still in a bull market and from what I've seen the technicals don't matter a whole lot unless you're day trading. The fundamentals are much more important in this market.
The equity market is on the verge of collapse. No one will see it coming. They'll just flip the switch one day and that will be it. Historically, you have a collapse every 6-7 years. We are now in that
range. Gold will also rally counter to the market.
EGO in my opinion should be above $10 at this market level and gold should be back around $1,800 in the next 6 months.
The stooges in the market never quite get it. They don't understand the economics behind the metal's market. No matter what happens, they still believe there's no reason to own the metals or the stocks.