Some thoughts
a)gold stocks producers are being heavily manipulated by hedge funds who bid up the stock, short it and then bid it down in a cyclical manner
Here is a rare snapshot into JP Morgans trading of SGX check the spread sheet at the end and then compare to the historic price movements
http://aspect.comsec.com.au/asxdata/20080207/pdf/00810026.pdf
Autobots trade SGX all day everyday JP look to be doing it in via 4 related parties
"JFCP" = JF Capital Partners Limited
"HCM" = Highbridge Capital Management, LLC.
"JPMWF" = J.P. Morgan Whitefriars Inc.
"JPMSAL" = J.P. Morgan Securities Australia Limited
"JPMSL" = J.P. Morgan Securities Limited
Note the large "transfer in" with over 5% of the stock they are arbitraging their short and long positions to determine price and basically sell down to their short , hence we have a good gold company thats price drops without explanation in the middle of a USD gold rise.
This creates investor fatigue with the average punters, buy SGX on a gold price rise and it goes down.
How many other large gold producers are having their price manipulated by the likes of JP Morgan ?
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