Sensible Analysis16 Nov 2020 16:56
I've nicked this post from OMI - A contributor called Eldorado5. He is talking about OMI but this is relevant to here
Well played Eldorado5!!!!!!!!!
I agree Phoebus. I think everyone has a valid point here. The share can move in anticipation of news; on news or after news. It can move on sentiment and no news. It can move on a Colombian lockdown or vaccine developments. Banks could fail and it would have an impact. They key though is to be patient and that means more than a few months!
If you take a look at other Gold and Silver mining shares, you'll see most are high %'s off their 12 month highs. Barrick is 23% off its peak, First Majestic, 35%, Hochschild 43%, the list goes on. Orosur at 50% is off. Is this cause for concern? Well, no, not if you believe in the big picture. The stock markets have reacted positively to a potential covid vaccine and the usual big boys such as Apple, Google, Facebook and Amazon are sucking money from the touchlines and away from precious metals. Few people will have Orosur or precious metals on their radars yet. But this is short term. Seasonally, October and November are poor months for precious metals and Diwali hasn't ignited great demand this year but we are entering a seasonally good period between December and March when demand for the physical and mining shares is usually good. Professionals will be adding here and at some stage, money from other big boys and girls will start filtering into mining shares and then there will be a clamour from Joe Public through very very narrow precious metals and mining shares doors. We are tiny markets but when demand ignites it will ignite! I saw it in the early 2000’s and in 2010/11 and I’m anticipating it now. The ducks are lining up – but patience is required.
Sign In
Follow the stocks
