Gold finished this week at $1646 per oz, marginally down on last week’s $1658 and almost back to the $1645 of the week before. Gold is going nowhere fast, although the Gold mining ETFs I have been keeping an eye on are still gaining modest strength, as can be seen from the chart below (courtesy of ADVFN).
I warned in June of last year, when Cloudbreak DIscovery (CDL) joined the sub-Standard List (then as Imperial X) that a £10 million death spiral facility would be trouble for the then (at IPO) £11.7 million capitalised company, with the shares at 3p.
I have been an uber-bear on sub-Standard and TSXV-listed Pure Gold (PUR and TXSV:PGM) ever since first writing about it in April of this year – and that from a Gold-bull. This morning we had news that has me racing for the Ouzo cupboard for my breakfast.
Gold finished the week at $1658 – marginally up on last week’s $1645 but essentially unchanged. However, as gold hovers around its recent low, Gold miners have picked up a smidgeon, as can be seen from my chart of Gold vs GDX (Gold majors ETF), GDXJ (Gold juniors) and GOEX (Gold explorers). I discussed a potential M&A frenzy HERE in the wake of three potential bids for AIM-listed Shanta Gold (SHG) and wonder if that might be showing up in the chart.
Gold finished the week at $1645 per oz, down from last week’s $1695 and back below the apparently all-important $1675 line. So we have had a false breakdown, then a false beak-up and we are back in the doldrums. But in view of what else is going on (even higher interest rates, anybody?), I would suggest the yellow stuff is actually doing just fine.
Gold closed the week at $1695 – nicely up from last week’s $1661 and comfortably above the apparently all-important $1675 level. But the bigger news from Gold was the rise to almost $1730, which prompted the most bearish Gold-bull, Jordan Roy-Byrne of TheDailyGold.com, to suggest that we may have finally seen the bottom, and that this means that the (downward) break of $1675 was a false breakdown. On the face of it, after last weekend’s depression (the darkest hour is always before the dawn!) things are looking more hopeful.
Following a ridiculous rise in the shares of sub-Standard-Listed AIQ (AIQ), I have been expecting the forces of gravity to reassert and pull them down from a peak of over 19p. Gravity duly obliged over the last week, dropping AIQ’s confetti to 15p at the weekend, but now they have dropped again to 13p after the company handed out a load of 1p warrants. Normally I would shout and scream about pigs in the trough if warrants were issued at 1p when the shares were trading at 15p, or 13p at which they closed. But this is different.
Gold closed the week at $1661 per oz – up from last week’s $1645, but still below the apparently all-important $1675 mark. It is all a bit depressing, but with incoming cash from the latest AIM-listed Ariana (AAU) dividend of 0.175p per share due tomorrow, the Gold price in Sterling terms within £100 of its all-time high and equity markets in another bear-run, its not so bad.
Death spirals have been a hot topic of conversation here on ShareProphets, the issue being whether they decimate share prices and are thus a major Red Flag. Tom pointed out here that there is no causal link but with Cloudbreak Discovery (CDL) of the sub-Standard List, there seems to be another issue.
It is now just three months to the end of the year and at the last count my slam-dunk sells were one up and four down. Not too bad, but will I get a clean sweep?
