Very strange that the price of this has dipped by 10% as we almost touched 240p when gold moved to $1500 oz. Gold consolidating at this price should see us in the range £2.60 to £3.00, with a dividend of over 6% for this year. Can't be too bad! DyOR
I see a bit of profit taking here. Hope you're lucky, because every time I take profit this rises again. Anyway, in a hold and add right now. Reasons: 1. Gold price risen over 15% and looks like it is breaking out. Currently PBT should be up by 50% from mid June onwards. 2. Dividends that drive the share price should rise. Perhaps in a few weeks when the next dividend is announced. 3. Weakness of the pound against the dollar. Revenue in dollars, share price in pounds. The weak pound has added another 15% to the share price here since Brexit announced. This is a key Brexit hedge play.
Looking like this leg up will take us close to $1600 an oz fairly quickly. The economic situation is not going to change soon, so we could easily see a challenge to $2,000 an oz. Or am j just dreaming?
During the last significant rally this went from 40p to £2 quite quickly. We stuck around the £1.50 mark for a few years, so you can only guess where a gold price in excess of $1600 per oz could take us. I am not particularly surprised by the slow but persistent rise in the share price. It's exactly what happened last time.
Anyone who thinks BoJo will deliver Brexit is living in cloud Cuckoo land. Reason: the majority of self centred MPs don't want it. He will need to win a majority in an election. Then the elected MPs will then magically want Brexit.