IMHO ‘market sentiment’ is a subjective intangible fluffy...

IMHO ‘market sentiment’ is a subjective intangible fluffy concept that is eternally immeasurable and unprovable. Call it women’s instinct, a hunch, a feeling or a mythology if you will but don’t rely on market sentiment to make your investment decisions, unless of course your are a believer in dust and shadowy forms.

Over the last three months the markets as a whole have not had serious corrections because they are rising:
The Dow is up 8%
The All Ords is up 6%
RMS is down 20%
RMS has not been tracking these broad markets

Over the last three months the precious metals markets have not had serious corrections because they are in a short term bull market:
Gold has risen 9%
Silver has risen 21%
Platinum has risen 16%
RMS is down 20%
RMS has not been tracking the precious metals markets.

Is RMs a high cost operation?
A1. It has been recently because they have been running out of quality ore Wattle Dam.
A2. In the future is should become an average cost producer at Mount Magnet. Time will tell.

The above markets (with the exception of RMS) are going gangbusters because investors across the globe are having to choose between a wall of worries and a deluge of cheep funds. This dichotomy of fundamental choices causes daily volatility in the markets and nervousness among private investors: some days we have risk on and the prices of PMs and shares rise, on other days we have risk days and they fall. If the majority of RMS price movement has been based on external factors then RMS would have moved with the major markets that it relates to. It didn’t, it went the other way.

Yesterday’s Fed announcement of QE3 should ensure that many markets move to the upside for at least the next month.

Based on all this 'sentiment' an the move into higher production at Mount Magnet I rate RMS a massive BUY.

K