as I say I haven't check Fidelity out, the reference to NCM was buried in a pretty small article in the AFR. Not something that would have caught many peoples eyes. Historic balances of their holdings would be an interesting thing to research if anyone had the time.
As I said in my previous post its pretty simple. NCM has had their stress test. $7 is the low unless someone wants to argue differently.
If you are a believer that gold is going back to the $US1100 levels and staying there, then NCM are going to struggle badly, along with most other gold producers.
I am a believer in an increasing gold price for the next 6-12months so from a trading perspective the current mauling in the NCM price gives me more room for confidence, as from here on in if trades don't go my way I'll park the trade in my portfolio.
I think anyone declaring gold dead, should have a look at the history of mankind.
On could argue that apart from its industrial use, gold is a curse to mankind, as it locks up capital that could otherwise be productive, but on the other hand gold is also something physical and tangible that mankind can hold and enjoy, a universal exchangeable commodity that acts to mitigate one mans risk against another's.
Man and gold will be inextricably linked until a time comes when mankind can't afford to entertain its allure any longer. And I tell you my brothers and sisters, I wouldn't want to be living when that time comes.
SilentO
NCM Price at posting:
$9.68 Sentiment: Hold Disclosure: Held
