Gold Mining Love

[Shard]

Gold Price over $900, Rand/Dollar at R9, Gold Mining down 5% at open. You can only laugh

[#2]

Suprisingly last week ZAR=8.4 gold=875 and our mining stocks were trading 10% higher than this morning

[SimonPB]

so now maybe people will start to beleve john an me? Leave gold stocks alone, if you like gold - buy gold. If you like gold stocks visit your doctor because you needs pills :)

[Shard]

Irrationality cause by fear, panic and emotion at its best. Just a bit upset I'm locked into gold mining and not Newgold, its flying.

[Running_bull]

the problem is: funding! all the big dogs are sitting on the sides waiting for volatility to settle. they cant take on the sort of risks we put ourselves through... GFI, HAR, DRD are making huge profits at the moment... thats enough encouragement for me alone, never mind the future sh*t the EU, US and UK are buying themselves into.

[Shard]

Must admit, I can agree on that point. But I do think we're seeing a delayed reaction to conditions in the gold mining sector due to the lack of funds in the market. Bottom line however, if the current conditions persist, gold miners financials are going to start looking very rosy.

[barry_1]

HAR call warrants,very volatie,good play though.

[Shard]

Yup, loving those, they're negating the Loss on my GFI calls. lol

[#9]

got to agree with Simon here. don't understand the love affair the market has with Harmony. They couldn't even make profit when gold was consistently trading above $900/ounce. What they going to do now, with production volumes declining, funding for new projects looking increasingly unlikely, etc

[#10]

Gold may not move up dramatically - huge piles of the metal are held by the reserve banks who will take each opportunity to sell small parts of there holding into a rising price. It is the investment that will hold its value.

[Wizard]

You are right.the financials have always been a problem for these companies. The production volumes have been coming down and costs have been increasing. But if the gold price starts going UP at a HIGHER rate, someone will notice these companies! Just maybe.this time could be now.

[SimonPB]

shard, not even close. Look back at gold/rand price and gold stocks over the last 5 or even 10 years. My point above has been valid for a long long time and the question the gold stock buyers need to ask themselves is why is this trend going to change ?

[SimonPB]

rb, no they are not. GFI, HAR, DRD are nto makign money. A comment from ANG a week ro so back, that the industry needs the rice above $1000 to make money, but even then it depends on copst controls, and they don;t have much control over costs.

[#14]

Skaaptjop ou swaer, when gold was previously above $900, the Rand was not over R9 to the dollar. I put my #*%$ on the chop block and predict R11+ to the dollar soon. DRD has done a nice inverse right shoulder (even if it was a cent higher than the head), and if it breaches R4,70, R6 is the target projected up. If you treat it as a double bottom you also get to R6.00.

[SimonPB]

then to put another knife into gold stocks, safety. This is becoming a bigger issue, and will get even bigger in time, and it is a cost issue at the end of the day.

[#16]

Simon, that knife goes into the whole mining industry. Better have your traders buy some Telkom & Richemont then?

[Running_bull]

Simon i see what you are saying, but as investors, if gold is at $750 and moves to $900+ and $/R moves ++, and for me a clear indication of going even higher, the companies are much better off, and that for me is a buy. Also if i read a comment like that in the news, i would assume every investor knows that, and should be priced in. i like buying when not everyone agrees with me, its usually more profitable than not :)

[SimonPB]

Vitorc, yes. But gold more so due to the depth of the mines. Coal is mostly open cast or shallow mines, plat also not deep as a rule.

[SimonPB]

RB, sure I see the sense of what you're saying. But the reality is that it is not happening. So something in the picture is wrong - that is the challenge to gold mine bugs.

[Shard]

Whatever your take on the situation, you cant contest there is money to be made here. There appears to be an anomaly here with Gold mining opening down and Gold price up. Gold mining then corrects in the late morning. If gold comes in UP tomorrow morning and Gold Mining opens Down with a weaker Rand/Dollar, my recommedation is get long in some gold mining and realise a nice gain by noon.