Well, the USPOG will finish at an all time today (the intraday spike on Dec4'23 was an aberration), and the A$POG substantially exceeded the previous high Dec'23 intraday high - gold bugs will be delirious, but WTF ?
Inflation remains the main worry (for many gold bugs), unstable banks, weakening economy, both local and international, growing conflict in the ME an Ukraine where both are reaching a decisive inflection point ......
While the short term boost to gold miners might be appreciated, are we seeing the beginning of an unravelling of the wider market ?
A major market correction will affect all stocks, and especially those leveraged (see Ian Verrander's latest article)
A prominent gold analyst, Jesse Felder is quoted on a prominent precious metals site whose name begins with K .... sums up the bull case for miners
"As good as gold looks, miners look even betterIt’s not just the precious metal that looks good. Felder said that he is extremely bullish on precious metals miners as this sector hasn’t been this beat up since the bear market lows in 2015However, Felder pointed out that the negative sentiment is not aligned with the sector’s solid fundamentals" .... "senior producers are about as cheap as they can get" .... Felder points out the potential lies in the very low base that the rally is starting from .... today the GDXJ is up 4.5% and the GDX up 4.3% .... but remember "the commodity leads" which means that after a lag period the miners will appreciate with growing momentum till they're well and truly overbought ????
Well, one way or another, RED is on the verge of becoming a senior Aussie producer ... the conjunction of favourable influences is very propitious.
Let's hope that finally the hysteria about RED's debt & hedging will finally be extinguished, as the massive profit potential of KOTH becomes ever more apparent
RED will open at 34.5c (as it now seems ) and will continue to firm till the end of the FY while RED's M&A partner is finalised ?
Come on Raleigh, make my day !
