RE:RE:Gold selling off today. Down $31BlueChipper2020 wrote: megacopper wrote: Gold selling off today due to strong jobs numbers in the US. Should only be a temporary dip. See how NFG holds up. I suspect it will pullback a little but in the past NFG has had a mind of its own and hasn't followed the price of gold to closely.
https://www.kitco.com/
I see NFG holding strong today as LAB drill holes basically says, at least to me, that if LAB is getting those hits on its property, what lies on the 70 mile strike of NFG faults? Unless I am missing something?
I am not concerned about the gold price, as NFG is ultra high grade and it is going to do very very well based on its drill results even at $1300USD gold price. However the gold price is not going that low, not even close.
SIC traded at $0.12 to $0.15 when the gold price was at its highest last summer. It is now $0.60+ based on its drilling activity among other reasons today. Also viewed as very high grade.
Too much attention to the gold price for juniors, particularily mega high grade ones like NFG, is unwarranted.
I have one junior investment which is a lower grade multi-million ounce deposit and growing which becomes more interesting at minimum $1750USD+ gold price. So the higher the gold price the better and it seems to effect the share price (it is very leveraged due to the lower grade). But for NFG, forgettaboutit.
BC
You make some good points BC. The price of gold doesn't matter a whole lot with this deposit because it is extremely high grade. I only mentioned it because investor sentiment is everything with the gold juniors.
Any junior that has a load of gold at a low grade that is borderline economically will soar with a higher gold price so the leverage is huge.