Any 20% correction is generally termed a bear market. I didn't make this definition up and I know there are plenty out there saying it is a normal correction in a bull market. I say its a bear market. Miners have eaten #$%$ since late 2011. Thats basically 3 years of a bear market. Even the most of ardent of gold bulls are getting tired. I have a hunch that gold will go back down to 1150-1180. Not even an educated guess but a hunch. That will drive all the micreants out.
However, whenever I look at gold and how poorly it has performed as well as the miners, I look at M1 and M2. M1 has increased by about 70% since 2009 and M2 has increased by 4T. That is after the recapitalization of banks. When velocity picks up even a little the multiplier affect of M2 will kick us in the #$%$ with inflation. Then you will see m#$%$ive buying of gold.
Well at these point they either survive the downfall or they go out of business. It has been a very long bear market for these stocks. They are, as you said, a horrible investment. Will they recover? Of course those that survive will but when??? This could last another year, maybe more. For some reason there are a lot of people predicting a new low in gold this sept. Seems counter-intuitive with all of the QE going on in Europe now but the US $ is trading higher and higher. From what I have seen almost all gold bulls are capitulating.... That could finally bring about a true bottom. When there is nobody left to sell, then the bottom is in. Doiesn't matter if fundamentals are good or not.
if you are thinking this is going to help gold you are about 2 years behind the curve. QE hasn't helped and even a resumption of QE as well as Euro QE isn't helping. This is bad for gold right now. Eventually QE will be proven to be a disaster (*my opin only) but don't expect bad employment numbers to help gold anymore. I measly $7 pop is nothing.
looks like the gold stocks are being driven down and leading gold at this point. They did it before and they are doing it again. There are a number calling for a gold low in Sept. I don't doubt it. Nothing is helping gold rally at this point. It definitely looks like it is going lower right now.
Geez, where do I start.... let me narrow it to financial field.
Number 1: With all of the QE, which by the way exceeded the recapitalization of banks by trillions of dollars, I thought we would have seen much greater inflation by now. The problem is that there hasn't been any real lending going on. What I didn't realize is that the banks can park their (our) money risk free at the FED and get a nice risk free amount of interest.
Number 2: That the miners would be such poor performers due to their misallocation of capital expenditures and large high capital, low return projects.
Number 3: The stock market would fool most (or at least me) and go from 7000 to 17,000 in such a short period of time, even with people unemployed. I attribute this to the #$%$ prospect worldwide for foreign capital and like moths to light, this is the best place to go. Once other countries/zones start to improve you will probably see capital flight for the same reason.
This is just a small list of my vast miscalculations. I am probably a bit more honest with myself than most. Do i regret my decisions. Hell yes I do....
why don't you sell the call option yourself then? What dollar and maturity would you do?
That is the one thing that people don't seem to understand. The world economy is in shambles right now so the US is the only game in town. You keep on hearing that small investors aren't in the market and that there is a "bubble" but the fact is that there isn't a place to park money right now. The US equity market is it. Nobody is going to buy yen, yuan, nor the Euro with new QE coming. So the US is where its at. Gold looks like it will be down and out for a while still. I thought 2014 would be it but not so sure anymore.....
All of the FED money went to recapitalize banks. However, the FED overshot by about 100% to try to stimulate the economy. The banks have held that money because they can park it at the FED and make money on it. When this money, through way of loans, etc makes it into the economy then we will have massive inflation. This will happen. It is a matter of when. The FED raising rates is all noise. Can they raise it a few hundred basis points, of course. But any meaningful change will cause the ballooning deficit to become unmanageable. The FED is trapped and they know it. It is all smoke and mirrors.
Definately the warrants: Novo Resources Corp. (CSE: NVO; OTCQX: NSRPF) ("Novo" or the "Company") has given notice of the acceleration of the expiry of share purchase warrants issued as part of a brokered private placement that closed on December 12, 2012 (the "Warrants"). The Warrants are exercisable at a price of $0.90 per share. Notice of the acceleration of the expiry of the Warrants is being mailed to registered holders of the Warrants.
The terms of the Warrants include an acceleration clause such that if the volume weighted average trading price of Novo's common shares on the Canadian Securities Exchange is $1.20 or higher for at least 20 consecutive trading days, it may accelerate the expiry date of the Warrants upon 30 days' notice to the holders (the "Acceleration Clause").
The Company's common shares have traded in excess of $1.20 for a considerable period of time. In order to encourage the exercise of the Warrants in a timely manner which will provide a quick and cost effective pool of funds for Novo to use to aggressively pursue its corporate goals, Novo has elected to invoke the Acceleration Clause. The new expiry date of the Warrants is August 21, 2014.
Warrant holders may exercise their Warrants by surrendering to the Company, before 5:00 pm (Vancouver time) on August 21, 2014, at Suite 1980, 1075 West Georgia Street, Vancouver, British Columbia, Canada, V6E 3C9, the Warrant certificate, together with (i) a duly completed and executed exercise form in the form attached to the Warrant certificate; (ii) the original Warrant certificate; and (iii) a certified cheque, bank draft, cash or money order in lawful money of Canada payable to Novo Resources Corp. in an amount equal to the purchase price for the number of shares subscribed for.
About Novo Resources Corp.
VANCOUVER, BC / ACCESSWIRE / July 17, 2014 / Novo Resources Corp. (CSE: NVO; OTCQX: NSRPF) ("Novo" or the "Company") has given notice of the acceleration of the expiry o
as Stockmaven and others have noted, this is why the company is worth way more than it is given credit for. This is a diamond in the rough. It is one of only 3 real producers of Niobium; which by the way is becoming used more and more. To secure a supply and not be subject to a monopoly, it would be prudent for a large company (steel or otherwise) to buy. Pretty soon they are going to figure this out....
It is probably one of the highest beta trades out there for gold. If you think gold is going higher IAG is a good bet. However, if gold drops they have some issues. Note that there is Niobec (a metal used to strengthen steel) that they have which can provide a floor under them for losses. Good Luck.
Its a good report. I read through it and I am pleased. I think they got the burn rate down and the cash flow is starting to look good. Throw in the new ramp up in production at the mine and they should do well. I like it. No surprises and more than offsetting Mouska with the new production.. Its a good report. Gold prices are low but they are doing okay.