I am expecting a much higher value placed on gold in the future all based on the devaluation of the currency it is measured with. But what if gold was capped at $1200. How would that affect TDC? The mine would be profitable but the return to the shareholders would be predicated on how watered down the shares would be to finance the construction of the mine.
There is an apparent price cap on the stock price of $.17 to $.20. Why is this so?
1) There are sellers who just have to sell regardless whether they are supporters.
2) There is an effort to keep the price capped for whatever reason.
3) Sellers who have lost faith.
On the other side of the trade, we all want to pay as little as possible. We want a deal but also would like to see price appreciation. These do not mix well for a rise in price.
My take is that most of the weak hands are gone. The day traders are not a factor. So it must be a price capping for whatever reason, as I believe if those sellers would stick to a higher price, they would likely receive it in time. They have a range that they sell, so we are stuck here until they exhaust their supply or are naked shorting. I do not have that info so I am speculating. If the "cappers" are successful going into the next step, which is financing a mine, TDC will not be as rewarding as we had anticipated.
If that was the case even I would be tempted to exit the trade and move on to my silver favourites. I will hold through this down cycle but re-evaluate on the next move up.
