I totally agree. AZX undervalued to GGG/BAB listing in London.
Yes, gold did fall, but fundamentals for gold upward trend remains. Is the US or Europe out of the woods? I don't think so, and far from it.
The US FedReserve may say its looking better now, due to "better employment figures and domestic consumption".
But what about the next quarter outlook? and the quarter after that? long term outlook? The govts of the US and Europe are heavily in debt, that won't change overnight, probably take decades to fix. Its like China's GDP per capita at around $5500 USD. Would it become over $10,000 USD per capita overnight? Definitely, it would take at least a decade.
So we are likely going forth to see some quarters in the US with rosy numbers, other quarters going to be a nightmare. So its going to be volatile going forth. We are just going to be waiting for the next market correction, with this rally going on.
Also if you read this CNBC article, I totally agree with this economist. http://www.cnbc.com/id/46714688
If the market perception and growth model of the West is depended on "consumer consumption AND credit".
That too me is risk over a already risk situation.
No doubt, metals is the way to go. Esp. gold and silver.
Not sure if you realised, Dr Derek Fisher just resigned as Managing Director of Moly Mines (MOL), he would be an excellent candidate to join BAB as Non-executive Chairman, good for Bullabulling to get a man of his calibre.
Historically MOL had a gold operation in NSW, which I recall been divested.
AZX Price at posting:
26.0¢ Sentiment: Buy Disclosure: Held
