A long trigger over this short term trendline. First targets displayed above.
A long trigger over this short term trendline. First target would be the 50 ma / 10.50 area.
Mines and Money spoke with Rick Rule, Chairman of Sprott Global, ahead of his keynote presentations atMines and Money Australia and Mines and Money London in 2013.
We asked Rick for his opinions on the state of the market, his top picks for commodities and what questions investors should be asking the management teams of mining companies to gauge their investment potential.
M&M: Do you think that we have reached the bottom of the market for mining stocks, and what sort of signals are there to support your position on that?
RR: I don’t think we’ve reached the bottom for mining stocks, but I have to say that my response is more intuitive than empirical. It’s really a function of remembering the last three or four cycles where the bottom was marked by an almost farcical capitulation; a one or two week period where there were almost literally no bids.
As I recall, that period was followed by a fairly long period of very low volumes, where both buyers and sellers were exhausted, so I don’t feel like we’ve reached the bottom.
We’ve had brief periods of capitulation, in particular last April, but I haven’t seen the really violent capitulation which has marked the bottom of prior junior markets.