New Found Gold Corp V.NFG

Gold at $1940...war politics or macro economics?

[GGGsOldFriend]

Assuming gold starts to hold gains into the mid $1900's, rather than repeatedly retesting $1900, at some point the market is going to get nervous that gold might not sell off once the Ukraine situation is stabilized.  Mr. Market is going to get a bit greedy at the prospect of buying miners so cheaply.  Don’t be surprised if we see a very substantial move in the miners across the board sometime soon.  Again, this presupposes gold starts to get more sticky in the mid $1900’s.

[Retiredgeo]

Here is the counter argument: As the broader markets sink day after day the pool of bargain hunters becomes exhausted.  When the last of them are gone stocks go into freefall and we get a market correction.  Panicked investors sell their gold first and their small caps second to cover margin calls.  Gold goes down $200/oz and stocks like NFG loose 60% of their share price in a

[GGGsOldFriend]

Agreed. I think we ultimately see a market washout at some point, I just don't know when.  And I agree gold and miners will wash out with it.  I just don't know when it occur and I sure don't know whether NFGC will still be $6 when it happens.  This is the stuff that makes a market. 

[megacopper]

Well anything is possible. I think back to 1987 when the market crashed and the baby was thrown out with the bath water and everything got crushed, gold stocks included. Personally I dont think the market will crash but rather go through a long period of low or negative returns due to inflation or stagflation as global economies struggle due to high energy and commodity prices that translates into

[Retiredgeo]

You don't have to go back to 1987.  March 2020 wasn't that long ago.  Gold went down $200/oz and exploration stocks like NFG got cut in half in a couple of days.  Fortunately, none of this lasted but it was a very scary time for some of us!  The trigger point was a rapid bear market which sent the market down some 10%, then the correction hit. Is the market lining

[likeike]

Geez Megacopper if we were in anymore of an agreement I would have to fly to Gander just to give you a big hug even if that might be a little weird and confuse the Rock Doctor.  Always the way that the big boys move first and keep moving until they use their stock as currency to buy more projects. The real defecation will hit the rotary oscillator when the market figuires out that 

[AlwaysLong683]

While I agree NFG's share price could get a significant boost from the price of gold alone if the gold price goes on a real tear, NFG is not even a junior producer yet and likely won't be for at least another couple of years if they are not taken over, so my guess is it will be the senior producers that will see their share price steadily rise if the price of gold does the same, then