EAR 0.75% 33.3¢ echo resources limited

Don't measure your genius or stupidity based on what has...

  1. 11,185 Posts.
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    Don't measure your genius or stupidity based on what has happened with the gold price in the last 2-3 months. It all could have quite easily gone the other way and your genius in averaging down on EAR could now look like stupidity and your stupidity in not buying BRB could now look like genius. I think out of the stocks you mention AIM and BGL made their own moves, more or less independently of the gold price. RED captured the market attention with the story of the bulk mining potential at KOTH but that story could easily go the same way as RMS's stage 3 Edna May open pit development if the A$ gold price falls back. I'm actually surprised that with the rising gold price RMS hasn't dusted off its plans for stage3. GMD hasn't done much but if you got in around the last CR price you are doing OK irrespective of the gold price, although the high gold price must be helping to support that story at the moment, like it is for many of the other hopefuls.

    I'm more interested in putting bigger momey on the very near development hopefuls, ie projects that have just declared commercial product or are very close, like RSG and DCN. These stories have potential for big gains IMO if successful as they will have timed their runs to perfection with the gold price. Potential stepwise increases in cashflows while the gold price also makes a step change. Having some exposure to USD gold producers is also probably a wise move IMO. The Australian dollar producers have had a good run. If we can get through high 1300 resistance on US gold we could really see the makings of a new credible bull market for gold. Current levels aren't enough confirmation but if we can get through 1400 this year the game is on for the next decade IMO.Esh
    Last edited by eshmun: 20/02/19
 
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