The BOE is soon to be a non-player in the gold market. They are ramping down their sales, and certainly everything else they possess (which is less and less)has been leased. They are overrated in terms of impact. The big entity is the Swiss, and they seem to go about their business in an orderly fashion. CB sales are not that big of a factor, the WAG seems quite intact. Right now it is speculative shorts and carry trades that weigh on the market, and those players days are numbered. Even the relative amount of hedging is in gradual decline as is production. I've been at this investing game for over 25 years, and have seen few situations more bullish in terms of fundamentals and technicals. There is an incredible amount of combustible fuel and soaked rags lying around in the store room.
Investors are also not paying attention to outstanding results in the exploration industry. I guess it is my private little secret, but let's look at the case of Metallica (MR), a stock on my portfolio list (posted earlier). Tiny little market cap, and half of a deposit that will likely be produced at 300 POG.
On Monday afternoon the stock was trading in the high 20's and announced two incredible drill holes at a second property (El Moro)in Chile. I was drooling and all lathered up. But, since there is no trading market in these stocks, I wondered how the price would respond. Surely, I thought you guys would be all over this one. Upon checking the price before the open I saw plenty of stock offered at 29 cents. Thinking it wouldn't be there long, I entered a good size order anyway. Sure enough they filled it at 29 cents. Stock is 75 cents now. That's the easiest 25K I've made in some time. Come on everybody, get your heads out of your asses! This is happening all too frequently right now.
If you have even elementary knowledge about deposits, what's so tough about analyzing this one?
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