Caledonia Mining Corporation (TSE:CAL)

[NYBob]

Shona Mashona Masonic Golden Key -

Gold mining stocks not only track the price the gold,
but they move proportionally higher relative to the current
price of gold (and lower if gold price moves down).

So in a manner of thinking they are like option plays
on the price of gold without the expiration date.

Note that we are talking about the trading characteristics
of a commodity.
The price action tends to be characterized by sharp emotional
moves and spikes with excited peaks.
Gold and gold mining stocks tend to trade and move like small
stocks.
Keep in mind though that they can still trend in bull markets.
You only have to look at the chart above and observe
the bull market from 1969 to 1980.

In Chart below, notice the extremely sharp price moves after
some base building formations labeled as 1 and then the peak
of the moves labeled as 2.

Also note the volume surges -
this is what technicians call base building.

Remember bases always take longer to form than tops -
the more base building the higher the moves -



Welcome to Caledonia Mining Corporation (CALVF)

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What do you conceal?
All the secrets which have been intrusted to me.
Where do you conceal them?
In the heart.
Have you a key to gain entrance there?
It is a tongue obedient to reason,
it speaks in their absence,
as in their presence.

Shona Mashona Masonic Golden Key -

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