RMS like every other company will crash. The gold price has only been high because gold is used as a safe investmentan and inflation hedge against a falling usd.
When gold hits highs of $1900 all gold companies share prices are overvalued by confident investors. I think 50% of RMS share price could be a result of the high gold prices.
This gold boom reminds me of the nickel boom before the last crash when nickel reached $50k usd a ton and fell to $8k a ton. Nickel companies went from a low price of $1.20 to highs of $6 and then fell back to their lows.
This same type of price movement could happen with gold. If this is a 87 style crash or worst gold could fall down to $700 mark. A similar price movement did happen with gold last GFC but it will be more noticeable this crash.
RMS Price at posting:
$1.51 Sentiment: Sell Disclosure: Held
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