This is a very good trend. There seems to be something up. I don't think that there will be anything big out of the swiss vote but there has been some strange happenings. One that I really can't stop thinking about is this proposal by Deutsche Bank
"However, the idea of gold purchases has merit because of the possible sellers. Much gold is held in private households, especially in countries like Germany. In some cases these are unwanted remnants of crisis-driven investments five years ago. A program that targeted these holdings would liberate dormant liquidity, some of which might even flow into consumption."
It is really such I strange statement I can't make out why they would even suggest it.??? The only thing that comes to mind is that they need physical gold. It is the only thing that makes sense. "dormant liquidity, that MAY flow into consumption???" #$%$??
I think that if you can get past the short term pain, and its anyones guess how long this will last this stock should rebound nicely. I think this spring is going to be good. Just one of those gut feelings not based on any real knowledge.
okay, this is really weird. Now gold is up a couple of bucks after being down almost $20. Seriously, buy now. I have never seen price action like this and I have been watchhing this market for a very long time. There is something going on.
They just follow the trend. It makes you seem smart because it is, duh, the trend. So when the trend changes you don't look so smart but most of the time you look pretty good.
Here is your chance to buy. Always scary to buy when something is down. I am actually stunned how quickly gold popped back. It was down over $18 and now down only $9 or so. There is something happening in the gold markets. You can see it in volume in the miners and the price action of gold over the last couple of weeks. If you have the guys it might be a good time to buy.
Technicals are complete BS. The only reason technical work, if they ever do at all, is that there are enough people that agree. The problem is that you can draw lines anywhere on a chart.
Stocks move on sentiment. The best definition of a bottom I have ever heard is when those that have sold have done so and those that will never sell are left. Then there is only one way to go and that is up.
Gold may go lower but I personally believe very strongly that the miners have bottomed. The volume and the 40% decline, the lowest sentiment, are all true markers of a bottom. Look at people selling IAG at $1.50 and people starting to say "this is BK in action". This is typical of fear. The volume on AUY was off the charts! It traded some $35M shares. That was the most of any stock that day! AND THAT IS FOR A LOWLY MINER!!! That is capitulation. I have only seen it one other time and that was when bank of america traded below $3.
Good luck. hold your shares, we won't see $1.50 again.
Leeb, i am with you on down and out shares. I don't have as much of IAG but my losses are larger at this point. There is a great article by Bob Moriarty on 321gold about how they ring a bell at the bottom (if you are listening). This past month was a classic blow out bottom for mining shares. I think the water is safe. Those that would sell have and there is "no reason to own" so contrarian investing says go ahead. If you look at IAG, yes it can go lower, but really, they have enough cash from Niobec and operations to ride out the storm. We should be good here. I bought another 5k this morning and will be uping it to 20k total shares over the next couple of days. I may buy some extreme downside protection when the volatility shakes out.
Don't think it is even on the table. This stock is just way undervalued. All of the miners are way undervalued. This is what happens when a sector is just despised and trust me, this sector is despised. It has been a very rough ride for some of us but I am not selling. this company has lots of life less unless Todd Hoffman (aka Letwin) blows his wad on some new trommel. In a number of years we will either be saying "why didn't I buy more" or "what the F was I thinking". There will be no in between.
It looks about right. This is basically a 2$ unlimited call option on gold. If you think gold is going to go up then buy at will. The miners have been left to die.
Not sure what explains it. Kitco says short covering. Why? Why would they cover when the trend has been pushing down. There is some evidence to say that physical gold is getting harder to come by. I am the first to dismiss this but now there are some fairly legitimate companies/analysts on Kitco saying it so I am a bit more open minded. When I looked this morning gold was down over $11 and it went down to almost down $20 and then did a huge reversal to up $25. These price swings are nuts. There is definitely a battle going on. Personally I was thinking why, with all of the financial BS going on (japan included) have most of the public shunned gold? It would seem prudent to put some money in at this point. I can't predict bottoms but I really believe that the markets have overly discounted how bad the financial shenanigans are in the central banks.
This company lets some PR out that they are reducing executive ranks. This is all BS in response to what they know is a bad report. The management of this company is a farce. They need to shudder unprofitable mines, hoard cash for now, and hope for better gold prices in the near future. They are really a bunch of morons. They could have hedge part of their production when gold was $1500, $1400, or so. Now they are forced to sell it at break even or a loss. They need to cut their corporate salaries and get real miners in their that know how to run a company. Letwin makes Todd Hoffmann look like a boy wonder.
it was interesting to see GG's CEO talking about AISC. Says it is complete BS and I agree with him. No other industry, even comparable commodities like Oil and others, don't have to submit to AISC. Why should the miners be forced to use a metric that isn't part of GAAP?
The US market has legs left after Japan decided to dump 25% of their govt pension funds into worldwide equities (read US stock market). This whole thing is going to blow up dramatically at some point. It is a ticking time bomb. Japan is a failed nation at this point and that will come to a head within 4 years. Then who knows what the heck happens but it won't be good.
I agree. Gold and Silver miners have been taken out and left in the #$%$ pile. Nobody cares except those that are insiders a very large financial institutions. Those are most likely the ones putting in the buy orders at these ridiculous levels. The market gets to irrational extremes and this appears (i say that because who the hell knows if this is the bottom really) to be it. The Market Cap is the same as their financial position!! They could close their 2 *unprofitable* mines and do just fine. AND THEY SHOULD!
Lets face it. The financial system is still a huge mess. It isn't something that is fixed. Japan just basically said they are failed nation. Our market is going up because the Japanese pension fund just committed the 25% they were going to use for government bonds to external stock markets! This is crazy. This is coming to a head and very soon (3-5 years) and I am very concerned about what it means for my kids!!!
sorry, you have the wrong message board. That is for IAG airlines. Not IamGold.
I agree. this is the final flush for the sector. The volume across the board for the miners was off the charts (for the week). I firmly think the bottom is in. Even if gold drops $100 the miners have caught some religion (after 3 years) of cost control. This should bode extremely well on the upside. It may not be quick but it is coming.
I agree. It happened here too. I think that stocks are at a discount to what gold is trading at now. Sure they could go lower but the volume over the last week tells me that there is a changing in the guards. Usually high volume spikes with large moves tend to show that bottoms/tops are in or darn close.
Its just not going to happen. Gold is a good hedge but countries have walked away from it and they aren't going back.
They aren't going BK. You haven't looked at the financials. They just sold one of their assets for 530 Million so you probably didn't figure that in. They have years at this level. They can basically sit on their machines for a while until gold comes back up. They can also turn down their CAPEX, they have a 500M debt but that is due in 5 years with interest only until then. So please tell me how they are going bankrupt. Please inform me.....