Not quite believed the Gold price move above previous highs and $2000 because there was no confirmation in the movement of Gold juniors/explorers. It would stand to reason if the 'markets' genuinely thought that Gold was set to be sustainably higher that the markets would also price up the equity/share prices of gold miners and gold explorers.
The Gold price has now retested its previous breakout level so I'm giving it a bit more respect and adding some positions in speculative gold explorers.
One problem with gold explorers is
1) they tend to operate in highly unstable geographies where corrupt officials/politicians can try to expropriate licences/profits
2) finding gold is hugely difficult, most of the easy 'low hanging fruit' has been taken
That is where ALBA come in
ALBA are exploring for Gold in Wales. Wales as part of the UK is a reasonably safe jurisdiction for a gold mine. There is unlikely to be corrupt officials trying to stymie their plans. The Government is unlikely to take their exploration licence away etc
Another advantage of ALBA as a speculative gold exploration play is that it is searching for Gold at an old abandoned Welsh gold mine Clogau which had already produced 80,000 oz of Gold. It is much easier finding gold near to old mines.
ALBA shares look interesting from a technical perspective exhibiting one of my favourite 'set ups' with a pincer movement between 50 and 200 day moving averages.
ALBA will start drilling in early September. Given that they will be drilling at an old gold mine I expect them to deliver news of 'gold discoveries' pretty soon after which could lead to a serious move in the stock especially if the gold price is providing a strong backdrop to such news.
