What's your take on CNMC? Actually bought them quite some time ago at 30+cents. Was thinking of taking profit around 55 cents. Do you think it will rebound back in the short-term? Or will more people dump the shares to decrease the price further so I should just take the profit now? After all, the price shoot-up quite dramatically in a short span of time.
Ans:
CNMC recent bull rally is largely due to gold prices, and this has always been the case. Fundamental wise I do not see any growth factor or any awesome developments in months to come.
As such, it is necessary to understand Gold's movements. Gold is a hedge against inflation, uncertainties and other FX currency pairings such as weakening of USD and etc.
With that in mind, Brexit has caused much panic and uncertainties, thus gold's rally.
If Fed is true to their words, and to hike rates in time to come, USD may strengthen (which i believe so), then gold should retrace back to the previous level. Gold and USD are inversely related.
Since you mentioned that you have profits already, i would take it first. Of course, there is an uncomfortable feeling of what if it were to go any higher. Based on my experience, the only thing certain is now. Anything else in the future is a gamble, as much as it is backed by fundamentals.
Shares do not help you in making money. It is the movement of share prices.
