Gold Stocks Getting Cheaper Again
I used the market panic to picks up gold miner Kinross Gold (KGC) again at 13.88$. With KGC entering oversold levels, it might be a good swing trade. Gold is hovering around 800 level and holds a key resistance level. 1 month chart shows KGC has dropped 21%. I might be bit early to jump in, but I believe the odds of profiting from this trade are higher.
Recently KGC won the shareholder approval of bidding for Aurelian Resources and will take control of the rich Fruta del Norte gold deposit in Ecuador.
Ecuador froze all mining earlier this year while it rewrites its mining law, a move that stripped more than 50 percent from Aurelian’s share price and allowed Kinross to get it for far less than it might have cost. Many Aurelian shareholders complained the company was selling out at too low a price.
This might turn out as a good investment in the long haul.