Interesting indeed. Big drops on overseas equity markets, but a big spike in POG... potentially good for goldies like PMI. Our market opens in about 8 hrs from now. The general consensus is that the ASX will open down but recover into the afternoon with renewed demand coming into the market. It is how our market has been playing out recently. Some see it as our market pre-empting the US market. So, it is definitely, a possibility. And, this may spur the market onto a short term rally that has been expected for a over a week now.
Friday’s falls overseas were in direct response to the US jobs report. Gold has retained its status as a safe haven all of a sudden, which can only be good for the share price of gold producers and explorers close to production, such as PMI. Also, the POG often recovers ahead of equities... possibly a leading indicator. Fingers crossed.
As for the Greek elections... maybe a catalyst for the markets to go down further. A couple of weeks between now and then, so here’s hoping for a short term correction. The only problem is that I suspect everyone else will sell any rally at the moment, so timing will be crucial.
Greece should have been “orderly” booted out from the Euro in the early stages. I read an article some time ago about how Greece’s balance sheets were “fudged” by a major US bank such as Lehman Bros or Goldman Sachs (don’t quote me on which one), in order to get Greece included in the Eurozone. Omnipresent corruption - greed the driving force.
The Greece problem is more like a festering wound that needs to be amputated rather than a tiny sore to be treated with a bandaid. Unfortunately, cutting Greece from the Eurozone will have wider ramifications and the ultimate fear is the demise of the Eurozone. Its the ongoing uncertainty as to whether it can ever be resolved that has the markets on a knife’s edge at the moment. We know the financial crisis is not over... its barely begun really.
I am convinced that whilst its best to be cashed up at this point in time, if you can afford to have some in the market, do so as a hedge... at the end of the day, no one can really know what or how things will unfold in the near future. So, interesting week ahead, for sure, Evens. Good luck, and keep in touch with the PVM forum. Plenty of upcoming announcements this year, which, hopefully won’t be overshadowed by the global woes.
PVM Price at posting:
73.0¢ Sentiment: Hold Disclosure: Held
