Are you superstitious?
Seems this ‘curse’ appears every year as investors, mining executives, newsletter writers, etc. prepare for the big event –
PDAC started today March 3 and runs through March 6 in Toronto, Canada.
Sometimes the mining sector is rallying just before the convention but in 2019, gold and the miners have been slowly declining the last week or two, but on Friday, March 1st, gold took a big hit and was down $20 to close at $1293. Silver also sold off and was down .39 to close at $15.19.
Of course this seems most years to temper the enthusiasm of all attendees and it now 2019 will not be any different.
In 2011 the Financial Post had an article on the curse:
“The annual Prospectors & Developers Association of Canada Convention might be the most anticipated event of the year for the global mining community, but it hasn’t always been the most rewarding one for investors.
The TSX Venture exchange, home to a slew of junior miners, has tended to outperform in the months leading up to the convention but drastically underperform in the months after.”
In 2016 – Can The Market Survive the PDAC Curse? (Kitco.com)
“I think we have seen things move pretty hard in one direction so it makes sense to see a pullback,” said Brent Cook, author of the newsletter Exploration insights.
Gwen Preston, author of Maven Resources, agreed that precious metals markets and mining stocks could see a pullback in the near-term; however, she added that the correction might not be as deep as some are expecting because many investors are waiting to buy on dips.
Mickey Fulp, author of the Mercenary Geologist, agreed that although prices should correct in the near term, he doesn’t see a major correction. He added that instead of a curse, it could just be a “PDAC Hangover.”
2019 – This year Bob Hoye, ChartsandMarkets.com gives us his spin on the curse.
Is There Really a PDAC Curse for Mining Explorers? Bob Hoye – March 1, 2019
My personal take on 2019 is that gold and the miners were due for a pullback and we started that pullback a week or two ago and then Friday, March 1st put in an explanation mark. I believe most of the consolidation has been completed and while we may trend for a few weeks, it seems the markets will continue their uptrend soon at which time, we should take out that nasty overhead resistance around $1400.
Once $1400 is taken out it will no longer be possible to buy the mining shares on the cheap, as Louis James, TheIndependentSpeculator, writes in his recent article, When Gold Breaks $1400 It May Be Too Late To Profit.
“Gold rising and staying above $1,400 would make investors around the world sit up and take note…. I fully expect every gold and silver stock in my portfolio to deliver triple-digit gains as gold heads up toward $1,400… The very best stocks could see four-digit gains if gold keeps heading higher….”
We will not be attending PDAC this year, but trust all attendees with find the conference up to their standards and will walk out with many great ideas as to which companies shares and/or stock warrants, convertible securities or options to buy soon, real soon.