There's a limit to how oversold gold producers and gold juniors can get.
In my opinion AMX has not been just oversold, but relentlessly massacred to such an extent that its rapidly increasing in ground gold resource were being valued at less than A$30 an ounce.
This is just a patent nonsense when compared to the gold price.
"The market is always right." You've got to be kidding. Just like in the 2008 massacre of gold equities, "the market," far from being right, has lost the plot imo.
I have topped up with more AMX today.
Eric De Groot had this to say:
"Gold stocks are so hated their underperformance relative to stocks has reached 1976 levels.
Their underperformance relative to gold is approaching the 1973, 2000, and 2008 statistical extremes.
Anyone selling gold (gold shares) to buy bonds for the long-term gives credence to the old saying a fool and his money are easily parted."
At http://edegrootinsights.blogspot.com.au/2012/06/fool-and-his-money-are-easily-parted.html
AMX Price at posting:
52.0¢ Sentiment: Hold Disclosure: Held
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