Volume low today ...by later part of morning, only 61k shares traded...guess everyone is waiting for everyone and many queueing to buy cheaper...UNTIL it makes another spurt as it does time and time again and those still fishing to get in rush to avoid missing out.
Like makamint said, things are chugging along very well.. Gold/Silver ratio is now below 50, a good milestone. Much of the focus has been on Wonawinta and on that alone, valuation of 51c-$1 have been suggested (and that was based on old silver price) - this does not impute any potential reserve contribution from their other tenements within their rich Cobar site such as Gundaroo.
This one would be underpinned by the escalating silver price (did you also notice that silver and USD are now positively correlated..which is why silver in A$ is moving higher) and then do spurts higher and higher as it closes in on financing and then production.
I read with interest that in the near future that gold as an investment vehicle would be open to Chinese households- imagine what that would do to gold and corresponding silver price.
The Chinese government has been encouraging private gold ownership by removing ownership restrictions and heavily marketing gold as a good investment. To assist this program, the country?s top stateowned bank (ICBC) has established a gold marketing co-operation with the World Gold Council. The government is also ensuring banks offer gold bars and coins to customers. The Chinese government is clearly engendering the perfect environment for hundreds and millions to invest ingold, thereby increasing the country?s holdings.
Mark Pervan, ANZ?s head of commodity research, just returned from a visit to China and reported that ?The expectation was that as the popular, but overheated housing and equity markets cooled, the huge liquidity injection over the last twelve months would migrate towards physical gold holdings?.
Considering the small size of the gold market, and the amount of surplus funds in the Chinese markets, if the two were to meet the effect on the gold price could be spectacular.
This augurs well for the precious market sector ahead.
CCU Price at posting:
37.2¢ Sentiment: LT Buy Disclosure: Held
