Quality leadership - the market is happy to pay for it

After absorbing a dose of the salts in the first two days of last week the markets made credible recoveries in the balance of the week. In retrospect it may be that the pullback provided good buying opportunities as there were no major breakdowns in share price charts. However, as usual only time will tell.

As the gold price vacillates around these levels we should remember that the best gold stocks to hold are not those with steady state production, irrespective of their profitability. We should be focusing on those with growth prospects either through significantly expanding resources or production rates. Gold exploration stocks can offer great leverage irrespective of what the gold price is doing, provided they discover more gold. Being a gold bull is not enough on its own to ensure profitable trading. It is all about the merits of individual companies rather than any comforting trend at the moment.

The importance of good leadership and management was clearly demonstrated when the share price of Genesis Minerals (GMD) surged from 7.3c to a peak of 21c on Wednesday, on the announcement that Raleigh Finlayson was to become MD and a significant shareholder. He is being joined on the board by Neville Power and Michael Bowen. Each of these gentlemen bring very valuable experience to the team.
 

 WeeklyComm25September2021.pdf