GOLD stocks gathering momentum

[Bush Trader]

They certainly are, but must be due for a rest. These two have run a bit hard IMO. As much as I would love them to keep running away, they must consolidate at some point. Great breakouts!!

Another perspective could be:
Aussie inflation moves higher within the RBA’s tolerance band. Interest rate rise could be looming. Further rate cuts in the US are being tipped. All of the above will increase the value of the Aus$. Gold may run as a result of these factors, however the NPV’s of Aussie Gold Stocks are likely to fall comparatively in the short term if the above scenario eventuates.


Cheers


BT

 

[gfresh]

Speaking of LGL.. I just sold today, collecting a nice profit - I bought soon as the interest rate announcement came through.

Psychological barrier of $4.00 seems quite strong.. and lots of sellers. Market depth had even more sell orders at the $4.00/.01 mark than shown presently (attached) earlier today. This presents a bit of a wall from it rising too much further at the moment.

May be good to pause and see whether it pulls back, or convincingly can break this barrier. A record high today of $4.02 on good volume of 28.6M, pulled back to $3.94 on close.

 

[explod]

Speaking of LGL.. I just sold today, collecting a nice profit - I bought soon as the interest rate announcement came through.

Psychological barrier of $4.00 seems quite strong.. and lots of sellers. Market depth had even more sell orders at the $4.00/.01 mark than shown presently (attached) earlier today. This presents a bit of a wall from it rising too much further at the moment.

May be good to pause and see whether it pulls back, or convincingly can break this barrier. A record high today of $4.02 on good volume of 28.6M, pulled back to $3.94 on close.

With volume today at 27 mil. a higher gold price Monday which tonight looks possible could take those sellers out pretty quick.

Since its high of May/June 06, Lihir has dehedged and taken over Ballarat. Momentum from those events as well as the gold price it is just kicking in. Not saying it wont' correct but I never sell a rising star as with the converse, "never catch a falling"...one

 

[rederob]

With volume today at 27 mil. a higher gold price Monday which tonight looks possible could take those sellers out pretty quick.

Since its high of May/June 06, Lihir has dehedged and taken over Ballarat. Momentum from those events as well as the gold price it is just kicking in. Not saying it wont' correct but I never sell a rising star as with the converse, "never catch a falling"...one

LGL is the pick of the gold crop for some of the reasons you suggest.
Importantly, its geothermal plant will keep its production costs at the lower quartile of producers, giving it strong margins as the POG climbs.
As I typed this post POG took out $740 and ran through $742 in a flash.
Similarly LGL will crash through $4.
Present POG momentum and high oil prices should see $785 without too much trouble.
$800 less than $60 away -woohoo..........

 

[rederob]

oooops, here's the spot price chart to corroborate the above surge...........

 

[champ2003]

well with gold now topping 750oz it certainly looks to be a promising week next week .

 

[alphman]

"There are even three producers with gold resources valued at less than $30 an ounce."

Interesting! Who are these three companys?

RER - Regal Resources?????

 

[Pimping]

Hey Ken, I checked all the stocks on your first post for this topic, seems every stock on the list has gone up since you posted but one RCO. Any insight to this current share price around 70c? Maybe undervalued?

 

[rederob]

LGL is the pick of the gold crop for some of the reasons you suggest.
Importantly, its geothermal plant will keep its production costs at the lower quartile of producers, giving it strong margins as the POG climbs.
As I typed this post POG took out $740 and ran through $742 in a flash.
Similarly LGL will crash through $4.
Present POG momentum and high oil prices should see $785 without too much trouble.
$800 less than $60 away -woohoo..........

Woooooohooooooo
Make that less than $15 away for the $800 barrier to be broken.
While LGL is another 10% higher than last month's price.

It will be difficult to keep up the price momentum short term.
However, strong consolidation of POG has built during the past year and a floor price around $650 offers solid support.

The technicals favour an ultimate rise to about $900 before another spell in the wilderness. So keen short term sellers may want to be equally vigilant buyers in the near term.

 

[AncientAntlers]

Gold shot through the $US800 dollar mark, closed at $US806. The trend is more than evident.

 

[explod]

Gold shot through the $US800 dollar mark, closed at $US806. The trend is more than evident.

Yes and my fav. Newmont up more than 4% on the XAU overnight. My rationale for getting into Newmont is, due to its problems which have now passed it was oversold below value. It is blue chip and diversified with mines under many jurisdictions. As the investment community looks more to gold as a good investment it will be the blue chips that are taken up in the first instance. It has a long history of being a fairly well managed company,,,if a little less than ethical at times. But are any of us being ethical when we hop in our cars and pollute the environment.

Others in the short term would be LGL, RSG, NCM and AVO. I will post others for a later stage when we get towards it.

 

[Sean K]

Yes and my fav. Newmont up more than 4% on the XAU overnight. My rationale for getting into Newmont is, due to its problems which have now passed it was oversold below value. It is blue chip and diversified with mines under many jurisdictions. As the investment community looks more to gold as a good investment it will be the blue chips that are taken up in the first instance. It has a long history of being a fairly well managed company,,,if a little less than ethical at times. But are any of us being ethical when we hop in our cars and pollute the environment.
.

I'm not convinced about NEM. They are still producing the same bad news that has smashed them down the past 18 months. ie, reducing inventory and rising costs. I thought there was a bottom recently until another bad ann surfaced. Looks to be recovering well, but I am not convinced management have got it right. If it doesn't break through $5.50 now, it may remain in woofer status.

 

[explod]

With the gold price close to an all time break out the market for good gold stocks is reacting accordingly. The stocks I follow have behaved as follows:

My blue chips:-

AVO Up 4.33%
LGL 3.4
NCM 3.82
NEM 1.8
OGC 6.15
RSG 2.62
SBM 4.14


Now the lower watch list, my hopefuls; BDG CTO GDR MMN and SRI overall are not going anywhere.

The market consensus appears to be heading to the solid producers.

 

[Uncle Festivus]

With the gold price close to an all time break out the market for good gold stocks is reacting accordingly. The stocks I follow have behaved as follows:

My blue chips:-

AVO Up 4.33%
LGL 3.4
NCM 3.82
NEM 1.8
OGC 6.15
RSG 2.62
SBM 4.14


Now the lower watch list, my hopefuls; BDG CTO GDR MMN and SRI overall are not going anywhere.

The market consensus appears to be heading to the solid producers.

Hi Explod,
It appears that the greater upside potential resides with the producers who can add to produced ounces with established infrastructure as those explorers on the cusp of producing have sometimes a long and expensive (something about a commodities boom?) lead time to actual production.

It may be beneficial to look for companies that are not producing but who may have idle production facilities close at hand.

BDG comes to mind as the sleeper that will awaken for 2008 .

PS, look at SBM go today @ 78c, 7.5% now into the close

 

[explod]

Hi Explod,
It appears that the greater upside potential resides with the producers who can add to produced ounces with established infrastructure as those explorers on the cusp of producing have sometimes a long and expensive (something about a commodities boom?) lead time to actual production.

It may be beneficial to look for companies that are not producing but who may have idle production facilities close at hand.

BDG comes to mind as the sleeper that will awaken for 2008 .

PS, look at SBM go today, 6% now into the close

Yes very happy with SBM, in about 10 days ago at .65 The producers for me till the market catches up with what is happening to gold, as they exhaust then those on the cusp for the next stage I think?

 

[treefrog]

A$ heading for $1120 by end of first quarter of 08 could be the reason: (according to frog's chart)

 

[So_Cynical]

All my gold stocks finished in the green today, even CTO put on a
little, and if LGL had not been brutalized a few weeks ago
id be in even better shape.

I finished the year up 11.4% and only got in in late July.

 

[wildmanchris]

Mun was up 12% today - up to 87 from 70 cents on the 18th of july. heading back towards all time highs

 

[mr. jeff]

An early christmas present.
These are the goldies which you want to really think about holding right now and not necessarily in a good way. (names in top LH corner of charts).

If you hold, are they topping out?
If you don't hold and we see a new rally in POG, then you may really want to have a look at these few that I have posted.

Reviving old thread, may as well dust it off, gold stocks may offer potential in the near future...I haven't added a couple that belong here, I'll leave that to any others to add in.

If anyone has a stock which they know something about, don't know anything about or just like the chart, get it in here and lets discuss. There are some long term enthusiasts around for various goldies, some of which get added to the competition each month quite reliably...

 

[notting]

There you go!