Yeh, I certainly hope so Coto. Developments with PRU's 17% all up investment have flagged to the market that they are comfortable with the permitting risk, consequently a firm base has been established significantly higher than range trading around18-20c. This may provide the perfect leg up to the 30c range. Meanwhile, Angus Geddes (FatProphets) is consistently bullish about gold price & notes the under investment in the gold mining sector, which is triggered to rebound if all probable events fall into place. Whilst PDI is not a producer, it's certainly progressed it's journey significantly towards becoming one & I have no doubt that it would be caught up in any bull run on miners. Extract from Angus's report from yesterday below.
Gold has surged to a new record high as the dollar has weakened. The scope is now raised for new record highs in the months ahead, but there is also significant catchup potential for gold/silver miners, which have lagged the physical metal. The sector is widely under-owned by investors in the US, Australia,and elsewhere. Financial flows into the sector and investment reallocation could drive a powerful rally in gold and the gold miners into yearend, particularly if the dollar weakened further.
On this front, the NYSE Arca Gold BUGS Index (HUI)is a stock market index of companies involved in gold mining. “BUGS” stands for Basket of Unhedged Gold Stocks. The index is designed to track the performance of companies involved in extracting gold that do not hedge their gold production beyond 1.5 years. This lack of hedging means that these companies are more exposed to changes in the price of gold, making the HUI index particularly sensitive to gold price movements.
The HUI also has other unique characteristics, including gold mining companies that are traded on major exchanges, particularly the New York Stock Exchange and other major North American exchanges. The HUI is one of the most closely watched indices for gold-related stocks, often used as a benchmark for the performance of the gold mining sector.
The HUI is often compared with the Philadelphia Gold and Silver Index (XAU) (see my note from earlier this week for tech comments), which includes both gold and silver mining companies, some of which might hedge their production. Because of its unhedged nature, the HUI index tends to be more volatile than other indices that track gold mining stocks.
In the last big gold bull market between 2000 and 2011, the HUI rose nearly 15-fold from 40 to 600. A similar pattern has been traced since the HUI bottomed in 2016 (along with the broader commodity complex). The HUI has recently broken above resistance at the 280 level decisively and followed through on the topside with sustained price action. The technical setup now raises the scope for a significant recovery and a broad-based rally to a record high above 600 over the coming year.
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