Gold is trending down, nobody in this market knows the bottom, but all that matters is not many are buying. Newcrest got caught in the perfect storm, a victim of external and internal dramas, and in the midst of a sharp correction in global markets.
I have copped a hiding on Newcrest, it was a month ago over 25% of my portfolio, but all my stops have been hit so I am now out altogether. I pumped the proceeds into Medusa as a hedge that a low cost producer will be the first to hit a bottom and turn up in this down trend on gold. For those following Medusa, its plummeting too, harder than Newcrest.
Despite all that has happened, I still have faith in Newcrest, and when Medusa turns back up, which I feel will be soon, I will take those profits and go all in on Newcrest again with a long term view.
Good luck to those still holding, especially those of you who have been in a long time and feeling the hurt. Be safe in the knowledge your loyalty will be rewarded one day.
NCM Price at posting:
$9.53 Sentiment: None Disclosure: Not Held
