The share price has been in decline for months and seems incredibly undervalued, especially given that the gold price has held up well. But then the same can be said of most other miners as well, on the ASX and internationally. The same as in 2008 just before the GFC really hit hard. Gold miners are often the canary in the coal mine, and are leading indicators for the broader market. If we are about to have a major crash, affecting all assets, then the fundamentals become irrelevant, at least in the short term. Is there any other explanation for the current prices of gold miners when every other sector is in a bubble? People are always predicting crashes, but this is the first time since 2008 that it is resonating with me. The good news is that if history does repeat then the gold miners will also lead the recovery after the crash, but maybe we need to brace for impact in the meantime.
NCM Price at posting:
$24.47 Sentiment: None Disclosure: Held
