interesting chart

In previous posts I have posted a chart showing the ratio of the %change of the NCM share price to the %change of the NY spot price of gold since 19Dec2103 when the gold price bottomed.

Below is the same chart but also overlayed is the ratio of the %change of the NCM share price to the %change of the NY spot price of gold measured in Australian Dollars since 19Dec2103 when the gold price bottomed.

This chart clearly shows that the market makers for NCM shares entirely rely on the US gold price and what's more the share trading is very tightly peg to this. Have a look at the chart and you can see that in the last four trading sessions although gold has been volatile and dropping the relative strength index using US dollar gold has been tracking tighter than at any time since 19Dec2013 last year.

Before the reversal in the gold price, NCM shares where out performing AUD gold by a factor of 14 compared to a factor of 4 for US gold.

People may remember a chart I put up comparing the run up of NCM shares from 19Dec2013 to now to a similar run up in 2003.

In a previous post I mentioned that I'd calculated the NCM vs US gold relative strength ratio for the run up in 2003 and found it to be the same as it is now.

This chart shows that the fundamentals of the company have very little to do with the price the market puts on this stock. It appears to me that the NCM share price is a rock solid trading proxy for the US gold price.

SilentO