Club Mulgoa

Wednesday, January 19, 2011

BDR

How the share price moves on a day to day basis is often dependent on market sentiment. Even when there is good news. So good announcement = falling share price is red rag to me. I sold SUN recently so with my wife's portfolio, I topped BDR up. The amount of gold being discovered in Brazil is great. I first bought at 25c in Aug 2010 and now I have to pay 86c. Sometimes, the market takes a few day to digest announcements but today's fall I think is purely due to sentiment. Of course, price of gold is down but it has been around USD$1365 per oz for a few days now.

China is increasingly hedging its currency to gold bullion. And Indians cannot resist gold...

Best days to buy stocks is when sentiment over-rides logic.

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