Highland Gold Mining Ld Share Discussion Threads

[11_percent] 17/11/2016 21:03

Should have got out of this with me profit.

[panic investor] 17/11/2016 20:56

Blimey DT you've changed your gold/silver bug tune !

[dt1010] 17/11/2016 20:49

This is nothing compared to what the Bears will do when they raise rates

[edjge2] 17/11/2016 20:39

retest 1212, same level few days ago

[srpactive] 17/11/2016 20:35

Before election it was stated it was good for gold
if Trump won and negative if Clinton won, because
everyone was expecting a Clinton win, now Trump is in it
is always negative for gold. Gold and miners are being
manipulated by the fund managers who missed the first leg up.
So they drag it down to suit their agenda so wrong, but I
continue to buy here and paf.

dyor

regards

active

[dt1010] 17/11/2016 20:06

I think it will go sub $1200 personally before any bounce.

January will be the month to buy more PMs. More cream to come off IMO.

This could reach 100p easily.

[depester] 17/11/2016 18:05

That's total bullsh1t, where do you see certainty? In the UK no none knows what will happen as a consequence of Brexit. It's not even clear if it will be hard or soft. There may even be a general election before article 50 is triggered if Theresa can't get it her way. In the US it is also still quite unclear what Uncle Donald will actually do and with which priority. The fact is both countries have been living beyond their means for a long time and the amount of debt in 2016 is massively higher than in 2008 with very little deleveraging or inflation to help. Countries in southern Europe are equally riddled with debt, especially Greece and Italy. There are still deflationary forces at play e.g. aging societies, excess resources and low growth in almost all western industries. I see gold getting back to the pre Trump level shortly and much higher when the first companies, countries or individuals get bust. We've lived in strange and unprecedented times with far too low rates since 2008. No one had any incentive to save, so people spend and spend, yet there will be a reckoning. The next crisis could come with interest rates tightening...

[dt1010] 17/11/2016 17:36

Seeking alpha:

The bearish argument for gold
The bearish arguments for gold, in my opinion, have emerged very recently. First and foremost, the election of President-elect Trump will lead to more fiscally conservative appointees to the Federal Reserve which will increase the odds that the central bank will speed up its tightening activities in the months ahead. Higher short-term interest rates increase the cost of carrying gold which is a negative for the metal. Furthermore, higher long-term interest rates present investors with other assets that offer a yield. Gold must compete with other assets for investment capital and the more attractive other vehicles become the more it detracts from the appeal of the yellow metal. Therefore, rising interest rates via a falling bond market that began in July is a strong argument against gold.

On November 17, the dollar rose to the highest level since 2003 when it traded above the 100.60 resistance level. There is a historical inverse relationship between gold and the dollar.


As the monthly chart of the dollar index highlights, the dollar appears to be breaking out to the upside and if it continues to add to gains above the resistance at 100.60, it could spell real trouble for gold. During the last leg up in the dollar that occurred from May 2014 through March 2015, the price of gold declined from $1315 to $1140.
Another bearish argument for gold these days is that a lot of the uncertainty in markets earlier this year has now become certainty. The conjecture about the Brexit vote has become settled, the United Kingdom will exit the European Union. The fear and apprehension about the U.S. Presidential election are over, the President of the United States for the next four years, at least, will be Donald J. Trump and his Republican Party will hold a majority in both the House and Senate for at least the first two years of his term. The fear may have turned to anger in many cases but the certainty is not in question. President-elect Trump ran on a platform of many issues one of which was increasing U.S. economic growth. His success in achieving that goal will cause interest rates and the dollar to move higher, and it is likely that gold will respond by losing value.


Negatives outweigh positives right now
Gold is a finite commodity, one of my first bosses taught me what I have come to believe is the most important factor when it comes to the path of least resistance for the price of the yellow metal. Gold is a perception metal and the supply and demand fundamentals do not matter much. Gold moves higher when there are more buyers than sellers and lower when buyers disappear. When sellers appear, it tends to take the elevator down. Any fundamental analyst who understands the gold market will tell you that each year the price of gold depends on investment or hoarding demand.
While the technical move in gold does not receive validation from the decline in open interest that decrease in the number of positions signals something different to me. The buyers of gold have thrown in the towel and the reason is the election, which was a watershed political and economic event. The bond market began its descent in July, before the election, at the same time gold reached its peak. The bond market continues to trend lower. The dollar has picked up steam over recent weeks, rallying from under 95 on the December dollar index futures contract on September 22 to over 100.60. It took less than two months for the dollar to rally by almost 6%, a massive move for a foreign exchange instrument, particularly the reserve currency of the world.
Higher rates and a stronger dollar are compelling reasons that the decline in gold, which is $110 below the November 8 highs as of November 17, has just commenced and we should prepare for a challenge of the $1180 level very soon.
Gold had a nice run for the first ten months of 2016 but now it could be over and done with
Gold had a great year in 2016, a year filled with uncertainty and fear. Over the first six weeks of the year, the S&P 500 dropped by 11.5% as Chinese equity losses rippled across the globe in a tsunami of selling.
In June, the lead up to and shock of the Brexit referendum was a rejection of the status quo and gold shot $100 higher in the immediate aftermath of an exit vote. The icing on the cake was the recent Presidential election shocker in the U.S. However, now the world is on a new course and it was the fear of that course that caused the yellow metal to appreciate. The human condition tends to resist change but once it occurs, people adapt. I believe it was fear that drove gold higher in 2016 and the world will make an adjustment to a new reality that will take it lower in 2017.
It looks like $1180 stands as a line in the sand for gold. I am betting we will see the precious metal move below that level but if it stalls and cannot approach that price I will reevaluate my position. Meanwhile, the longer gold sits comfortably at its current price level around $1229 per ounce, the higher the chance we will get that move lower that will tell is if the bull has gone into hibernation and the bear has once again emerged.

[dt1010] 17/11/2016 17:19

So you don't think a rate rise would cause gold and silver to be shorted?

I don't agree.

[srpactive] 17/11/2016 08:38

I think the rise in rates has been factored in, we have fallen
from $1340 to $1228.

dyor

[dt1010] 17/11/2016 08:35

If they raise rates in Dec, if, then the gold fall out will push this down to sub 100p IMO.

Then will be the time, when the dust settles, to buy.

But I take the risk of missing the turnaround, if the Fed doesn't act.

[panic investor] 16/11/2016 18:47

Adding in dribs and drabs on the way down

[dt1010] 16/11/2016 16:15

I am avoiding this until gold has stopped falling which I don't think it has, yet.

Will live to regret it no doubt.

[11_percent] 16/11/2016 15:22

Blog from the fool.

Therefore, against this backdrop and with Highland Gold expected to increase its earnings by 47% next year and its shares trading on a price-to-earnings-growth (PEG) ratio of only 0.1, it seems to offer a very enticing risk/reward ratio.

[trt] 16/11/2016 15:16

I think it's a false dawn. Those wanting out at this point will take advantage and sell. Re entry point is really much lower bearing in mind what the price of gold is doing.

[srpactive] 16/11/2016 15:15

The in the know are using scare tactics to get stocks they want
for 2017 on the very cheap. HGM will be 200 - 250p next year and
gold will be $1400. Mr El - Erian does not get big calls wrong,
he is telling his $1trillion under management to get exposure to
gold.

I for one would not bet against him, I am very long.

dyor

regards

active

[11_percent] 16/11/2016 15:11

Spr, good call this morning.

But, what fu.. Is going on, the share price is disconnected from price of gold.

[srpactive] 16/11/2016 14:35

It has been down four straight days, today was the fifth,
now hopefully positive. The first day of a up or down move
is the most powerful. If today is the first up day, it
could spike up very strongly at the close.

dyor

[panic investor] 16/11/2016 14:22

Things can't be right its positive !

[edjge2] 16/11/2016 10:03

120 appeared

[srpactive] 16/11/2016 08:03

Well the last few days we have started up, then finished down,
now on our fifth consecutive down day, we have started down,
just maybe a reversal?

dyor

regards

active