The problem with our goldies is that there seems to be a fair bit of downside to come in the overall market so risky plays will get sold down even if they have a good longer term story. Lets not forget what happened last year from around April. The sell in May and go away syndrome is alive and well. A lot of investors have scars from what happened last year and are wary. This has been a really tough 12 months, with a lot of under-performance by companies (NMG, RED, MML, explorers which are unable to get assay results in good time) failing to achieve their targets while even those that did (eg PRU, EVR) got sold down (with a few notable exceptions such as SLR, RRL and NST).
I will keep my spare cash at the ready for better buying in the second half of 2012, assuming I have any confidence in the central banks being able to keep all the balls in the air in the short/medium term. Another round of QE in the US would ignite gold and goldies again, but until then it looks like risk off is the approach, especially as European issues are coming to the surface again and China may be slowing.
loki
AMX Price at posting:
$1.03 Sentiment: Hold Disclosure: Not Held
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