There have been posts on the GXY threads detailing concerns about the economic conditions in Argentina & the risks associated with the development of SDV.
Below is a daily chart of the US index & something I've noticed is there appears to be a head & shoulders top forming. For conformation the $94.23 neckline needs to be broken before a bearish move down in the USD begins.
I bring this up for 2 reasons.
1. Does anyone know if GXY will hold the entire amount of the $280 million payment they get from Posco in USD?
If the payment occurs in the coming months before the potential reversal in the USD begins perhaps it would be wise for GXY management to convert some of this payment straight to AUD or another currency like the Canadian dollar (for JB development)? Splitting the payment up into several currencies in the countries GXY plans to develop mines will serve as a hedge towards a falling USD.
2. But the main reason I bring up the USD & the chart is to point out developing economies like Argentina & others around the world generally do better when the USD is falling, therefor economic conditions may begin to improve in Argentina over the coming months/years if the decline in the USD is sustained. This inturn will de-risk our SDV development significantly IMO.
On the other hand if the USD continues to rise all GXY has to do is make payments for the Argentinean SDV development in USD.
It's a win-win move for GXY as far as I'm concerned.
SDV needs to start ramping up & the sooner the better.
Just some thoughts I had on a lazy Sunday. Let's hope the trading week for GXY gets better on Monday.
GXY Price at posting:
$2.49 Sentiment: Buy Disclosure: Held
