Too much:
1. Iron ore on market. Companies must support large CAPEX committed to all those years ago during boom times by mining the stuff no matter what the selling price is. Sad but true.
2. IO from large producers who can weather this price storm, and more coming to market every single day.
3. Deflation pressures right now, inflation is being focused on the American share market, no one else's market.
4. Value still in the AUD. Needs to come down 10-15% at least to turn this issue around.
5. Unemployment in China, I now suspect and a mini-collapse in house prices IMO. They keep their mines open to stimulate their economy and keep money flowing.
I cannot believe how low AGO has sunk. I sold out Feb. 2013 @ $1.82 Avg. and actually MADE MONEY. The shorts have stolen everyone else's 'shorts' and stripped them naked. If AGO survives, a great buy down here, no doubt, but don't catch a falling machete. PS I no longer have any resource shares of any type.
AGO Price at posting:
22.5¢ Sentiment: None Disclosure: Not Held
BCI Price at posting:
84.0¢ Sentiment: None Disclosure: Not Held
FMG Price at posting:
$3.03 Sentiment: None Disclosure: Not Held
MGX Price at posting:
43.0¢ Sentiment: None Disclosure: Not Held
