Sunday, November 8, 2009
Newmont and a Road Map for Senior Gold Miners
Newmont Mining (ticker: NEM) is a fairly boring senior blue chip producer that is a favorite of institutional investors and has "high visibility" in the Gold sector. Newmont eked out a new closing high stock price for 2009 on Friday, and like a few other more senior Gold mining stocks (e.g., ABX, RGLD, GOLD), is suggesting this portion of the Gold sector is going to move higher.
Below is a proposed long-term Elliott Wave-type road map of Newmont mining, a good proxy for the senior Gold mining sector (11 year log scale monthly candlestick chart thru Friday's close):
I think Newmont will target its all time highs from January, 2006 and may or may not surpass them for this current intermediate-term bull move. If I owned this stock (I don't), I would be holding on until we get to these highs. Once we get there, I don't know what will happen, but I think we'll get there or higher by May, 2010 (regardless of what the general stock market does).
The junior Gold stock mining list is continuing to be updated (thanks for all your help and work on this, Paul!!!). Bookmark this link and check back occasionally for updates.