no better time to buy?, page-21

Considering another Fed member came out last week and talked down the urgency of QE3 (which led to equity markets dropping in response, but not gold) and that gold is now moving higher again, in my mind that suggests this break out in gold is the real deal. If it was going to be a false break, what was said about QE3 should have pushed gold back well below the trend line very quickly and it should have continued lower the following day.
I am growing more confident that the gold price and by extension gold stocks, are at the start of the resumption of the long term bull market following a 1 year consolidation.
After that long a consolidation, the rise should be very strong, especially for the stocks.
The US equity market made a high 4 days ago.
4 days ago, gold was at 1637 and below 1620 the day before.
It's now at 1674. POG and US equities appear to be diverging. The HUI is following gold, now up around 5% over 4 days despite general equities falling.
Last year we had gold stocks strongly outperforming general equities for several months before POG started to consolidate.
General equities corrected heavily while gold stocks were rising.
I think we should see gold equities rise strongly from here regardless of whether general equities now correct or continue higher.
This time the equities are coming off levels of good value. When they rose last year many appeared overvalued to me.
E.g., in May 2011 NCM was around $42; it is now $27 coming up from $22.
ABU was around the same price as now (how’s that for out performance relative to most?) but coming up from a low of 2.4c in January.
So much value has been added for ABU over that time with a jorc resource for OP, a scoping study giving a net cash flow equivalent to 7c (8c including cash on hand) and the addition of significantly more ounces discovered since, in my opinion likely to give us a value of 10-12c on the scoping study upgrade.
No allowance in that for u/g mining which should add significantly more value (open ended value until drilling defines a depth limit).
So much upside potential for ABU over the next few months and years.
Most producers are currently matching quite a bit higher this morning.
Good sign.