Have you been following this guy for a long time and have a feel for how good his predictions are? There are quite a few other chartists that say the same sort of stuff.
To me it is seasonal factors that are driving the POG and the fact that Chindia have been buying gold. The concern there is a possible credit bubble breaking and leading to a major reversal of demand for gold to former levels. Indians have a good reason to buy gold due to high inflation while Chinese seem to be buying it due to a lack of alternative investments and perhaps distrust of govt.
Somehow EVR does not get the sort of following as PRU has had even though they are producing a lot more gold, and will reach 450k ounces pa in the first half of 2014. Both have issues with containing cost of production but while PRU is debt free EVR has borrowed a heap of money to develop the Ivory Coast mine.
One thing with EVR is that it can become illiquid so its not so good for traders, while PRU shares are heavily traded.
I hope this turns out to be more than a short/medium term bounce in the POG or there will be a lot of blood lost by those who have recently entered goldies and fail to get out in time.
loki
EVR Price at posting:
88.0¢ Sentiment: Hold Disclosure: Held
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