RE: Lots of buying17 Jan 2023 09:02
The following is plagiarised from Stout, on the Power Metal forum. Thought it worth posting here, as many with the ability of self reflection will see themselves in the description. It's also a reaffirming post for those who have held long and strong :-)
The markets are difficult to predict - gold has been rising strongly since November, yet the junior resource companies in London have continued to struggle. They will play catch up, but while we long and wait for that moment the self-doubt eeks into company management and investors about if the recovery will ever occur. People need money for living of course and sell investments. We all switch investments because we hope for better returns elsewhere. Often we are driven into highly performing shares or those where social commentary is enthusiastic and we become captured by the prospect of continuing stock success. The best companies can take a while to see strength and market engagement, and that can be a cause of money relocating into more exciting options.
Yet given most investors lose most of their money the herd are generally late and/or wrong. The successful route from my experience has been painful and boring requiring extreme patience and a constant battle against the self doubt.
When the questions peak about the wisdom of investing in the resource sector, and when self-doubt is highest, is usually the turnaround point. Now we have the gold price, the low metal stocks, the enrgy crisis, the green technology plans, the infrastucture crumbling around the world and needing replacement. The two year drought in our sector and the consequent negativity is a great contrarian indicator for us investors, the flashing signs of resource criticality around the world should be the confidence boost we all need.
If the above summation is correct (and although I can't see showstopper problems to the proposition with a diversified model I may be wrong) then Power Metal has the chance to become one of the most valuable resource companies in London. And that, not 1.4p, is why I came here.