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Posted 12 January 2008 - 05:41 PM
Posted 13 January 2008 - 12:59 AM
Posted 13 January 2008 - 02:36 AM
Why is this?
Were they overvalued before? I don't think so.
Posted 13 January 2008 - 02:45 AM
2. I know I've been beating this like a dead horse, but the mining companies haven't been increasing their profits during this period of high prices. Construction costs and operating costs are rising as fast (or faster) than the gold price. Since corporations are valued based on expected future profits (rather than a simple proportional relationship to gold price), there has not yet been sufficient justification to bid up the already high valuations. Even things such as the acid used in heap leach operations are experiencing significant cost increases.
If/when the U.S. goes into a recession, this may relieve the pressure on the cost side of the equation and allow the miners' margins to increase.
Posted 13 January 2008 - 04:10 PM
Can you buy an ETF or similar that tracks CDNX or junior miners?
Posted 13 January 2008 - 08:21 PM
Posted 14 January 2008 - 11:59 PM
I think a great deal of the money that would previously have gone into juniors has instead gone into ETFs, so there is less capital available for juniors.
Perhaps people have been hurt so badly in previous corrections that they would rather find other ways of playing the sector.
Posted 15 January 2008 - 07:53 AM
Posted 15 January 2008 - 11:45 AM
Posted 15 January 2008 - 11:49 AM
Posted 15 January 2008 - 12:56 PM
Posted 15 January 2008 - 07:13 PM
Posted 15 January 2008 - 11:53 PM
To answer the question slightly differently, why would you buy any stocks in current market conditions? In the minds of many investors, stock markets falling = stocks, any stocks falling = stay away.
Posted 16 January 2008 - 09:07 AM
Bad news is I didn't buy till at $15, as I had to open a new account [Selftrade] just to get access to the Sterling versionof the etf
Did you want to access the sterling version purely for ease of use ore there other gains?
Posted 16 January 2008 - 07:24 PM
I think the retail investor is spooked right now. There are many probably sitting on heavy falls, even of good stocks, and many will have day jobs where it is not possible to react to current market conditions. You wouldn't want a stock market dependant pension maturing right now would you? Perhaps there will be a flight to safety, can't go wrong in bricks and mortar.
I see your point.
But MAJOR gold stocks (HUI) had been rising, while the stock indices (SPX) were falling.
Here's a chart, showing the ratio : HUI-to-SPX
The gap near 0.33 needs filling, and a pullback to 0.31 would not be surprising.
The strong rally off that clear mid-Dec. low would remain intact, if 0.30-0.31 holds
Posted 17 January 2008 - 03:07 AM
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