Interesting view but the idea that the sell off is really all about accumulation by the big boys is dreaming (as Yach would say). There is a broad sell off of gold companies both explorers and miners. The wannabes with nothing but nearology like CUL are getting the worst of it as they should. ARN is lucky its in a TH But gold explorers with excellent drill results like Roxy, MGV and MCT {and even DEG) have also taken a beating. No matter what we tell ourselves on HC the market is saying very clearly that gold companies are overbought. Short sellers are taking advantage but that is the fundamental sentiment across the sector. Looking at the re rated MCs over the past weeks that sentiment has evidence in support. Many are up over 50% to 100% or more. RXL is one of the best performers. No-one knows what the bottom of the sell off is and its very hard to pick the bottom. I would be surprised if the big boys are accumulating, except for those with insider knowledge. The good news is that the fundamentals of the gold bull for explorers are intact. There is a shortage of new gold reserves for the big companies like RMS and OZL Safe haven gold has not halved in price as you may think looking at the sell off of gold companies. The POG is brilliant and and looking very positive for the rest of the year and beyond. I haven't sold any of my RXL and I hold a lot, but also not buying more right now. I have been nibbling at a range of promising goldies with high grade results that are now looking good value for their MCs. I'm already down on them, but I don't expect to buy at the bottom, just near it. If they lose value again I will have another nibble.
RXL Price at posting:
7.0¢ Sentiment: Buy Disclosure: Held
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