GOLD. Had a big night at the street party.
Had a quick look but don't think anyone has mentioned about gold.
In case you haven't heard, the reason for the huge trading was Van Eck Gold EFT (GDX) dumped everything. They are not all that scientific and just saw the Feds call for rate hikes as the end of the gold show for the time being. They also dumped on the US last night. There have been big outflows from their fund.
Apparently 'everyone' knew this was gonna happen yest, so if you didn't know then see that as confirmation that you aren't in the loop as far as ASX goes.
There is also a mysterious lack of demand for gold in India that is prob linked to their currency issues. You would think that gold would be safe haven there but it seems not.
So is this a buying opp? Well, prices are down but there is a real prospect they could go lower. Some of the goldies are in real trouble and fear of bankruptcies is seen as reason for some dumping. Better know your FA.
Gold chart is pointing to $1100 and $1000 would follow imo. But PoG stayed steady last night despite the dramas. Also there were buyers for the stock yest who must think this could be a bottom.
I would be careful of buying a 'bargain' just cos you 'like' a stock. Unless you have a good knowledge of the FA then caveat emptor imo. What is the projected mine life for NST for example?
NB: Not all the goldies were hit, but I'm told that you can't read anything in to that. They might still get dumped on Monday. It was purely an index selling thing so no indicator that anything is better than another.
No reason why the PoG should suddenly run up so no pressure to jump in imo.
