OT - You can tell the gold newbies by the way they're telling everyone to buy the dip.
If you trade gold long enough, you know that if it falls out of favor due to macro events, there is always more pain to come.
Last two days, no enthusiasm to buy. Market will be buying Boeing, Ford, General Motors, Walmart for example - the recovery stocks:
Two telling events:
- The long mooted M & A activity in the gold sector still hasn't arrived. NST/Saracen an aberration as it was based on synergies. "Cheap" goldies still waiting for their takeover a la DCN, RSG etc. EVN hasn't bought a thing for months. NCM hasn't bought SolGold. Mericans call this a head fake.
- Everyone is discounting multiple vaccine announcements. If Moderna, Asteca, Johnson & Johnson etc were to release good trial results in the coming months - shoring up an answer to COVID - gold will get pummelled. Those announcements are coming in the next few weeks.
Newbies, be careful with your gold juniors, gold micro's and cow pasture explorers. When the selling starts, there won't be a chance to pull your pants back up.
Above is not financial advice and my opinion only.
.
