Well its a week I won't complain about, the IAU trade realised a 40% gain when I sold and DOM hit my stop for still a 5% profit.
Gold is still trading above the 50 day MA line and the last few days has seen some support at US$930. This time two years ago gold set of after falling off a high in April 2007 of US$691.40 to US$642.10 to break US$1000 in March 2008. If we see some consolidation at US$930 I might venture back in.
Buying LGL at $2.80's and DOM at $4.50 and then selling in $3.30's and $5.40's does appeal.
June 2007 was however certainly not a recessionary period and we saw some remarkable gains in the POG and they continued even after the stockmarket bull run came to an end.
There has been some data published which shows that gold does better in expansionary periods rather then recessionary periods. We may therefore be seeing the last time of gold under US$1000.
I am tying with 25 gold stocks to work out the stocks that consistently respond with the largest gains in share price value when the price of gold increases. I am looking over the past 13 months and periods where gold has had it recoveries after retracement. I have identified four periods. I am also splitting the stocks into different groups.(producers and explorers, hedged and unhedged.)
I am also identifying when news both positive and negative is influencing the price, so when this occurs I only look at the period upto the news point and then again from the start of the next recovery.
I hope this works to my advantage for the next recovery.
I still retain some shares in BWN (Bowen Energy)which I have held for a long while now. I am off to the emergency general meeting on Monday where we will attempt to remove the current directors from the board, I saw distinct value in this little explorer the board seem to share those thoughts but are intent in removing it away from the shareholders and into the hands of Indian steel moguls Bhushan at a knock down price.