The more exponential the rise, so is the predictable exponential fall, in all hi-flier golds this year, and not just gold, in anything. Look at BKL - Chart below, for comparison, not Off-Topic (not BLK - actually, you could certainly look at BLK as another random gold example). A 53% haircut from hi to today's low is not trivial. It can be devastating to the psyche of those who didn't book profits on the way up (risk mitigation - we don't know where price is going next...people like to think they do, but no-one does.) , especially if they didn't come in at 25 or 50c. It was a veritable money machine. You just had to bend over and pick it up off the ground.
Even if they were early birds, many bags were given away. I reckon many may well be underwater on this hi-flier. More precisely anyone who entered over $1.16 would be (I think that's right). Any opportunity they have to break even will be met with a kamikaze wave of selling: the supply overhang / overhead supply, whatever name you give it.
Companies like EVN, NST - which of course have suffered - have not suffered as badly. It's all about quality. diversification, Investment Grade, institutional sponsorship etc....
RSG was small player a year ago, then a Disallowed in 12 months or so, and so recently entered the ASX / 200. A money machine.
Disclosure: I just bought a small lot today, but have zero optimism for gold stocks, other than dead cat bounce off the recent low. In the final analysis, price doesn't move in a straight line.
Same is true of gold itself , in my view, which has an even bigger overhead supply. I don't see any trigger. We had a couple of huge ones, Brexit, Trump (which has the reverse impact to what was expected, Italy (a non-event) - and look how far gold price has fallen.....despite those "gold-friendly" events.
I'll throw in the gold chart first , then the BKL (Blackmores one)
XAUUSD - WEEKLY
BKL - Another Sector / Industry - exponential rise and fall..also greater than 50% haircut (reasons may differ, but same Shiite, same pattern). This was a hero of 2015 (with BAL, A2M etc.. - all broken now, BAL in Voluntary Trading Suspension after a TH - probably held by every second mother in the country with infants / babies ....all left holding the bag until Dec 21st, then ... even more Shiite...).
(20min delay)