Thursday 10 April 2008

Very bullish price action in RGLD

Royal Gold's price action suggests the next leg up is imminent. It's positive against a fall in gold. According the Cyclist from the forum "Gold's Action" the third week of April has been slated as the week in which the metals and their equities make a strong rise. He also thinks that this rise will last into early June. Others such as Goldrunner think that the HUI, the US gold bug index of unhedged equities, will almost treble this year! We'll see. But these respected posters have a history of being right and the fundamentals also back their analyses. This is also the year Presidential Cycle. Stocks has historically done well in at least the last 10 out of the last 12 US elections. That's another important reason for gold and silver stocks to rise.

The juniors have been in a bear market since 2005. They are now cheaper than they have EVER BEEN in this bull market! Some may go to the wall. Poor old Thistle Mining did not make it. But the others should make up for this in spades. Patagonia Gold could be a real sparkler over the next year. They may have THREE possible gold mines in addition to their resources in the Chabut, which may also see a mining ban lifted. Minerva Resources (MVA.L) is my hunch for the bigtime. They have a number of promising drilling results to be announced once they have been processed in the labs. I've increased my position in this one - as it is being given away at under 4p! They have exerienced, good management and great mining prospects.

Looking forward to the sparklers in the juniors this year. The gold complex should move up substantially into year's end.

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I teach Film, Media and English Lit.