Re: Gold 1243.45 12.40 1.01%
in response to
by
posted on
Jun 17, 2010 06:09PM
" Depends if a company hedges its metals or not. Also depends on whether cash costs/oz are going up, whether there are enough financial resources in a company to get the metals out of the ground, too many factors. " I would add to those that we're in the summer doldrums so lot's of money is standing still or came out before the holydays , and there's still a lot of money avoiding risk or stocked into some kind of bonds . That means traders own the market and can easily direct the price with small amount of money on risky penny stocks with relatively small volumes being traded every day . Watching the market lately i realise how tight the bid and ask are even as we notice most commodities such as gold silver PGM and oil rising in price . Even with stocks releasing good news the volumes still remain relatively light wich help keep the prices low . Investors or retail traders remain quite scare of risky investments and good reasons considering all the fears induced dayly on the public from news about debts , wether it's europe debt crisis or major problems affecting the US , or a possible slow down in asia .Other times we talk of possible trade war or possible currency realignment or even the possibility of air strikes in Iran that could derail into something worst . All those concerns affect the risk appetite of most retail investors leaving the way open to market specialist directing the way and taking profits off the table every step of the way before small retail investors have time to react . the smaller your portion of the pie the higher you have to wait for the price to go up in order to make a descent profit . Professional traders are well aware of that and they play the game wisely and many times shake us off the table before the takings become interesting . As you say many factors affect this stock as well as many others , patience could be rewarding as your experience teaches us . If CMM delivers on it's promises it should pay off before the end of the summer doldrums . As for now we are dust floating around in this warm summer wind .