Far East Capital Newsletter
Gold shines while everything else is uncertain
6 Jan 2019

In This Issue


Gold shines while everything else is uncertain

There should be no doubt in your mind; the great US bull market is over. We should not be looking to US markets for any joy in the next month, and perhaps the next year or two. The volatility we are seeing in the Dow, with extreme intra-day movements, is only scaring investors away while we wait for them to acknowledge the writing that is on the wall. It is time for these investors to look elsewhere.

The A$ gold price is powering ahead with the falling A$ and the rising gold price. The slight improvement in the Sentiment Oscillator this week can be attributed to the gold sector receiving greater interest. The strongest stocks have been the established gold producers while many juniors with good gold resource inventories continue to struggle. We should be expecting that many of these will be gobbled up by the producers where there is operational logic and geographical compatibility in the first instance. More exotically located resources will be less attractive the Australian-based producers at this juncture. 

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