External Factors ???????23 May 2018 13:27
777777 has closed his post nicely. Something like potential, performance and external factors ??
Potential and performance has been well covered by many ...... notably fsj and 77777. Even some coverage of external factors have been drawn out ie gold silver ratio, the inverted H&S on the graphical representation of the POG against time, the frightening past and present performance of paper currencies and the outrageous debt levels which threaten economic confidence. These all support or detract from our products ability to perform the instinctive roll given to our product since the dawn of Man kind's domination of our planet (Mmmmm quite lofty pros eh !!) . ie as a store of value and as a currency of last resort for States and Governments.
What hasn't been mentioned I think is the simple fact that the world is very busy and dedicated to trying to deal with the rise of the unemployed ...... in this I include the wealthy who live off the proceeds of wealth accumulated, the old and retired, the sick and needy and yes the slothful and those unable or unwilling to conform to a socially productive work ethic.
To deal with this cash dividends are paramount by a long long way. Hence the focus (encouraged by legislation) has been on Bonds with established income and now moving to shares in divi producing income (inflation and QE ? !). So the Stock exchange traded shares have been reaching new highs for some months now with the long long bull run seemingly endlessly running. Its worth noting that the London FTSE and Mid Cap is considered a very good buy just now.
So if a 100M Co which produces and flogs gold and doesn't pay a divi ; comes and asks you to push its shares; bearing in mind you are answerable to your buying customers and your own shareholders, what will you do as you try to sell something which isn't flavour of the month/year. ??
There in I believe lie the circumstances which establish our sp. Add to that a major holder trying to sell down their holding for reasons of their own and our situation is plain. Many institutional investors place money covering certain periods in the life cycle of a mine or an economic cycle. When its time to sell they sell willy nilly. I believe one of our institutional Investors is currently profit taking.
The Market is also a beauty contest.
Its too complex for me to sus. But I am a ''Gold Bug'' and having spent years in Mining I luv it when I see cracker Jack Mine Management. I also believe in Insurance so I await the time when all the theories just don't seem to add up and the Market lurches down or DT makes a bad call or the petro dollar looses out to Chinas preference for gold or the Govts just cant go on fooling everyone the dept is OK. Doesn't matter what ; it will come out of left field and wobble every thing ....... suddenly !!
I will be covered with a low priced, low grade, very well Managed gold mine with very decent resource potential.