First of all a gold miner v a base metals nminer is a bit of an apples v oranges comparison. But importantly gold stocks in general as measured against the gold price are trading just above post 2008 gfc crash levels - pull up a chart of the Hui or Xau or our Xgd and look how quickly these indicies doubled followed the GFC carnage. Value investors will understand this.
Accordingly I would expect NCM to approach the $70 level by the end of Q1 next year , with the usd gold price somewhere in a modest $1600 to $1800 range.
If you believe gold is heading back to $1000 then don't by NCM - simple.
I believe the bull market in gold is only just warming up - chinese and indian demand/overleveraged financial system/the demand for physical gold as opposed to paper gold alternatives plus a myriad of other reasons - If you believe in the gold story then you should strongly consider an investment in NCM.
NCM Price at posting:
$37.37 Sentiment: Buy Disclosure: Held
