The HUI being up 7% was just the average. Some of the more leveraged plays rose by much more. Harmony gold jumped 13%. It has recently reported one of the highest all in cash costs; “South Africa’s Harmony Gold Mining Co. said its average so-called all- in cost of production in the six months ended Dec. 31 was about $1,446 an ounce.” Alacer gold which has been one of our worst performing producers jumped 17% in Canada last night. The best performer (of companies that are components of the XAU, HUI, GOX, JSE Gold, and TSX Gold indexes), Goldquest was up 22%. SLR has also been hit hard so might follow suit with a larger than average rebound. A follow through next week after these big gains may be the signal we have been waiting for. By the time its obvious some of these might rebound 50% or more. For SLR that will be $1.50 still well below most brokers valuations. The problem with waiting for that time before buying is you might get caught in heavy profit taking after a rapid 50% gain. Not much better than trying to catch the falling knife after this extreme a sell off. A bottom is likely to be very volatile so will not be easy to avoid short term losses whether buying now or waiting. Might be an exciting week next week.
SLR Price at posting:
$1.03 Sentiment: Buy Disclosure: Held
