RE:Minus 5% today only wowThis is the NEM and NGT shares wash out I've been waiting for! Look at the technicals and trade volumes today setting up for a bounce soon. My guess is we will pop back up a few dollars by end of day or once wallstreet has loaded up on cheap shares (keep selling retail...they will take all you can sell them) and then the shares can finally start moving up. The Algos are just capitalizing on the multiple news feeds.
Despite their negative view on NEM, RBC is maintaining it's $40 US share price target (or about $52 CAD for the NGT-TSX holders) and RBC had one of the lowest PT of the majority of analysts issuing targets.
NEM won't have any trouble disposing of at least 4 of the 6 mines and I expect them to do quite well on the sales on the mines in Canada and Australia due to favourable locations and the lower geopolitical risks than places like Panama (does First Quantum ring a bell?). In fact, NEM now has the copper reserves the world needs should the First Quantum debacle not work out or drag on for a few years).
The price of gold is unlikely to head significiantly lower anytime soon with continued Central Banks buying and the BRICS clealy committed to moving away from the US dollar. Citi Group recently announced they expect gold to stay in the $2000 to $2150 range in 2024 and possibly spike to $3000 should a serious world recession occur.
Then there's the out of control US debt issue.
IMF expert warns U.S. on shocking dangers of debt crisis (msn.com) If the price of gold does go lower it'll only be manipulated lower to try and discourage the BRICS (and their allies) from moving away from the US dollar and a manipulated lower gold price would likely just drive more BRICS gold buying. And with all the doom and gloom going on around the world these days, the demand for gold (and by entension its price) in my opinion is more likely to rise than fall.
And for those new gold bugs or younger generation investors go research what happened to the price of gold in the 1929 Depression years and see which gold company survived and did the best. Hint, Homestake Mining was the Newmont of the day back then and if I'm going to hold any gold stocks in these uncertain times in history it's going to be the Newmont's and Agnico Eagles!
Many gold stocks are trading at significant discounts to Net Asset Value - NAV. NEM was trading at a 72% discount to NAV when the interview in this link was done a few days ago and with today's share price it's now even cheaper! But why believe me? ....Listen to an expert...
Look for discounted gold miners waiting for the yellow metal's price to break out: portfolio manager - Video - BNN (bnnbloomberg.ca) My opinion only, please DYODD.
HB77