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Community


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Online Share Trading

Engage and learn about markets and trading online

GFI and HAR

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Not applicable
Gold price trading at all time high at $906 this morning.These two gold stocks went straight down.Why is that?
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4 REPLIES 4
SimonPB
Valued Contributor
a number of reasons, one being the Rand at 6.72 and according to "experts" heading for 6.6475.
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King_2
Not applicable
The truth is that these 2 shares have somehow lost that leverage to the gold price. My guess is that they will continue to underperform until the next quarterlies come out. If you are really bullish, have a look at DRD instead.
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Ega
Super Contributor
Gold trading is difficult, as Simon says, the cost of deep mining rises exponentially with any attempts to increase production. Furthermore most mines are short of cash.

On the other hand DRD has a lot of cash and are increasing their output on surface projects, the cost of which is way cheaper.
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CrownA
Super Contributor
Gold will come. The inflation price of gold is lower than it was when it hit $850 in 1980's. DRD has cash, SIM has huge reserves, profitable gold mines, and huge gold & uranium reserves, and maybe PAN ? All the heavyweights are suffering under increased costs, hedges maybe, deep expensive mining, etc.
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