Resource upgrades, drill results and financing will move it higher over the next 6 months.
On the POG front, USD might be a little flat, but AUD looks good. Rothsay would be a very profitable mine at $1660. Unlike 90% of the specs going mental at the moment, EGA will actually make money soon.
It’s a funny world we live in where actually making profit is not that important anymore?
And as for bitcoin, all that tells me is that there is excess liquidity in the global markets. We might not have seen much wage and price inflation post GFC and QE, but we sure as hell have seen asset price inflation across many markets. The world is awash with liquidity, it’s the high tide floating all boats ATM. The everbubble.
This situation cannot continue indefinitely, and when the tide does turn (the last stage of a bull market is the most profitable and lowest volatility) the transition could be made ugly by phenomenal global debt levels (that no one seems to worry about these days either).
So we live in a new paradigm, a fintec revolution, a print money, debt is good, buy assets party that has fundamentally changed our perception of risk. The golden age of central banks backstopping everything.
Gold will have its day again if history is any guide.
EGA Price at posting:
28.5¢ Sentiment: Buy Disclosure: Held
