It's important to look at price vs volume action today...
Down 2% on so far the lowest volume day of the month, and lets face it, it has been a brutal month. At 11 am today a single buy appeared for 300,000 at $3.00 representing more than 15% of the days actions in one line. This was a sophisticated investor and not algo's.......who didn't even bother to go to a broker to manage such a sizable outlay. As I say, there are no straight lines in nature. But this was perfectly straight on volume size and price point. This to me is a good sign. Either a board member or a trader with such high conviction to make such a play.
Thanks Slange for reminding me about GATA and keeping my research scope as wide as possible. I watched a clip which I found most interesting and noted in the comments below that in the last week the Russian Central Wealth Fund intends to reduce its holdings in US Treasuries in favor of other currencies and gold as they see precious metals more reliable to hold. Surely the time for favoring US Treasuries is moving out towards other investments. Yes this could see yields rise, as demand for treasuries diminishes, but Gold could be a beneficiary. China is also due for a big gold splurge if you look at the central bank buying of gold. Gold as a form of reserve only represents around 3% of total reserves, where as other G20 nations have it is high as 60%-70%. Imagine if China got so sick of treasuries to favor gold.
And I also found that technological applications for Gold are having somewhat of a dawning of a new age with the use of gold nano-particles which is seeing forecast CAGR's in the vicinity of 12.5% - and 25% to be directed to water purification, drug delivery and applications in de-polluting car emissions.
RRL has too many near term catalysts, and I feel with volume dropping off and firm supoort base being established, that the downside risk is minimal when compared to the upside risk.
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