RE: Gold up again.....As discussed with insight in earlier posts (esp I must admit, etc.), there is a disconnect between pm stocks and pm spot prices and futures. This perhaps indicates that many investors, including hedgers, are betting for a short term pullback in pm's that will hurt sp's in near future. Yet, the pm's seem to want to defy the short term 'smart money'. This disconnect trend has been obvious, now, for years, at least since the financial crisis of 2008. Prior to this, stocks tended to outperform the commodities. When gold was at $450, and I started to buy, many, if not most, companies on the HUI were actually not making money, and valuations paid far more attention to NAV than profitability. But, a lot of investors were devastated in the crisis, especially if they sold at the bottom instead of buying, and the general market has been far more cautious since. Despite the number of pm bulls exceeding the bears, the so called 'smart money' has consistently been selling pm shares into the advance of pm prices. What this means, IMHO, is that the contrarian play is to buy laggards during this rally to new heights. This is not, as others have noted, a bubble until the general investor starts to place a significant percent of their portfolio into pms, and this latter has definitely not happened, despite the all time highs. Just check out the lack of movement generally in pm stocks such as YRI, RR, or OSK, and note the marked oversold conditions from overreactions to possible geopolitical troubles for such as names as PAA or BCM despite silver hitting near record highs. And, then there are companies such as R with minimal permitting questions, or GSL that have been absolutely clobbered. The general market has the extreme jitters causing even some uranium stocks such as PDN to fall off sharply on rumours of a government taking a minor stake in their resources.
Regarding CAN, specifically, the volatility is an opportunity, if you don't sweat it. The pr yesterday was to explain the delay in releasing drill results, which will be accomplished imminently. There are 6 drills going doing 8000 m per month! The technical staff has been doubled. The expanding properties are great, and near surface. The resource estimate is still on track for release before the end of the year. The Ethiopian venture is a freebie.
This was another buying opportunity today, IMHO.
Have a great weekend.
WK