IMHO would not buy until the downtrend ends.Look at PRU for...

First 23 Last

Share
Profile

Follow
Turnaround13

413 Posts.

24/07/15

20:56

Post #: 15691681
Share

Originally posted by cncventure ↑

I agree that Monday was a pivotal fall in the PoG and I think a lot of things conspired simultaneously to produce the degree of fall we saw (at least in USD terms).

That said, I have no idea where there PoG in USD or AUD terms will be in a week from now.

That said, over a 2 - 3 year time horizon I think that gold is far more likely to be higher than it is today (if you look at the price of gold in AUD terms over the last 40 years you'll see it is VERY consistently upwards over the medium/long term).

But more than just Australia, my belief is that with most major economies being highly indebted coupled with central bank mandates of needing to keep price stability (ie modest inflation) and maintain full employment then inevitably most central banks will be forced to maintain low/negative real interest policies (just as the RBA is finally moving towards now) to allow their economies to reduce these debt levels, but it's going to take FAR longer than most suspect and I think gold will outperform cash under these conditions.

So whilst it's a risky assumption to make, but all investments require assumptions, and the question becomes if the PoG (in AUD terms) was the same or higher than it is today is MML a good investment at its current share price?

For me, the answer is still yes.

Though that may not be true of all gold miners. MML is in a decent financial position with on debt and modest AISC compared to the rest of the industry (ie even if the PoG fell further it wouldn't suffer first).

Of course, if you had the long term view that gold was going below $900 and staying below that then you probably shouldn't own MML at any price.

HOWEVER I agree there is no need to catch a falling knife, so I'm personally waiting for the Q4 production report to be published and for gold to find some short term stability (which I think it's starting to do).

If the Q4 report is decent I'll be buying quite a bit more MML at these prices.

Expand

IMHO would not buy until the downtrend ends.Look at PRU for instance they came out with an outstanding report this week and their sp got slammed with the other goldies.

MML Price at posting: 64.5¢ Sentiment: Sell Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

Has uranium run out of steam? An update on nuclear markets & developments ahead in FY25

TVN

Tivan and EARTH AI gear up to commence fresh drilling at Sandover lead-silver project, NT

Week 27 Wrap: "Election year" is here as UK Labour win contrasts France; Trump wins immunity & annual report season hushes ASX

LLL

Leo Lithium announces major divestment of flagship Goulamina project to Ganfeng

Climate change to drive market trends to the moon

RHI

Red Hill Minerals Signs $6.5 Million Agreement with Peel Mining to Explore Curnamona Project, NSW

The Big Deal: Free-to-air TV swings the axe, but will it be enough as enormous sports deal bills loom?

KGL

KGL sniffs 19% Cu from drilling at Rockface play in NT

ITM

Fast-track assaying yields 182 g/t gold for iTech at new NT play

STN

Saturn’s stars have aligned for the gold explorer’s Apollo Project

There are more pages in this discussion • 14 more messages in this thread...

First 23 Last

Add X64 (ASX) to my watchlist

(20min delay)
Last 57.0¢		Change 0.000(0.00%)		Mkt cap ! $130.1M

Open	High	Low	Value	Volume
0.0¢	0.0¢	0.0¢	$0	0

IMHO would not buy until the downtrend ends.Look at PRU for...

Has uranium run out of steam? An update on nuclear markets & developments ahead in FY25

Tivan and EARTH AI gear up to commence fresh drilling at Sandover lead-silver project, NT

Week 27 Wrap: "Election year" is here as UK Labour win contrasts France; Trump wins immunity & annual report season hushes ASX

Leo Lithium announces major divestment of flagship Goulamina project to Ganfeng

Climate change to drive market trends to the moon

Red Hill Minerals Signs $6.5 Million Agreement with Peel Mining to Explore Curnamona Project, NSW

The Big Deal: Free-to-air TV swings the axe, but will it be enough as enormous sports deal bills loom?

KGL sniffs 19% Cu from drilling at Rockface play in NT

Fast-track assaying yields 182 g/t gold for iTech at new NT play

Saturn’s stars have aligned for the gold explorer’s Apollo Project

Featured News

Featured News

IMHO would not buy until the downtrend ends.Look at PRU for...

Top Stories

Has uranium run out of steam? An update on nuclear markets & developments ahead in FY25

Tivan and EARTH AI gear up to commence fresh drilling at Sandover lead-silver project, NT

Week 27 Wrap: "Election year" is here as UK Labour win contrasts France; Trump wins immunity & annual report season hushes ASX

Leo Lithium announces major divestment of flagship Goulamina project to Ganfeng

Climate change to drive market trends to the moon

Red Hill Minerals Signs $6.5 Million Agreement with Peel Mining to Explore Curnamona Project, NSW

The Big Deal: Free-to-air TV swings the axe, but will it be enough as enormous sports deal bills loom?

KGL sniffs 19% Cu from drilling at Rockface play in NT

Fast-track assaying yields 182 g/t gold for iTech at new NT play

Saturn’s stars have aligned for the gold explorer’s Apollo Project

Featured News

Featured News