On the Sidelines ... - IMO that EDV was going to go down today regardless of what is happening to the Gold Price (it is just helping the decline). This will test 50 cents and I am sure it is going to happen by tomorrow.
- The stock and the sector is still in a downward trend and I will not add any positions at this point. That being said, I am still holding my core position.
- I believe that this investment is not suited for investors who are looking at making a quick return in the next 3 - 6 months. The sector may stay down for a long time to come. If you can wait for 5 years or longer, this stock should provide some impressive returns.
- Keep in mind that if POG can stay around $1400 next year and following, EDV will most likely start paying a dividend next year once they are done with Aghbaou. The fall in CDN dollar and reduction in input costs (energy, trimming of labor, hold on CAPEX) will bring all in costs down from roughly $1100/oz today to sub $1000.
- Gold, and Gold mining stocks are the most "despised" and most "hated" investments right now. For me, the biggest decision in buying into an investment is "Market Sentiment". When I see the sentiment towards a particular sector is so bad, it tells me that the "bottom" is near. Just wait for a confirmation and then jump in. How many times has markets done this in the past and yet the investors keep on losing money by doing the "exactly wrong thing" at the "exactly wrong time".
- One last thought.... If you are looking for "Buying Low" in today's market, where do you find the maximum opportunity going forward.... Reflect on that.
GLTA..