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Originally posted by AverageJoe:
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Usually when this happens and unless all the resource of a company starts firing, sum of parts value more than whole. A good example is CHN which I think started off as a gold explorer that found Ni then spun off the gold assets.
BTC from the chart perspective now without even knowing what the future lies is very much top valued, same thing could have been commented when it went to $1K in the past. I was very skeptical of even the idea, too much borrowed from the gold narrative but it has stood the test of everything so reluctantly I have accepted it as being a competing safe haven asset class. Obviously like the commodity space you have your big dogs with a big cash flow/resource or the speculative stories, the same in the world of coins. Who is to say Shiba or Doge has value besides demand and supply. I am contemplating crypto etf instead of directly bitcoin et al, can't stomach those volatility.
On gold last night, I was a little surprise at the sustain rally into the close being a Friday. I still don't like that hanging man candle structure unable to break the housing candle that broke $1835. Next week open will likely set the direction gold is going.
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Agree the sum of the parts add up to more than the whole but if kept whole the synergies of diversity offers stability if they hold onto them in cyclical resource stocks. A company that has directors with skin in the game will appreciate the out of cycle metal assets they hold for when the market turns instead of looking for a quick pump in s.p. by off loading them.