Reward for Performance, Goldcorp chart....

[Scorpio]

Taking a look at the Goldcorp chart, this is about the most one way street I have seen in awhile. What a tight channel heading north.

Seems to be accumulators are in here buying steady as the entrant to the golds. As interest spreads in gold and silver, the big guns are going to look for quality, safe parking places. One of them is Goldcorp as the risks are much subdued vs the South Africans. Unhedged, and no debt = big share rewards, even if the Can$ has appreciated against the US$.

SA still has a bad rap, some of it deserved, and some not, yet it is there all the same. This shows up here.

Quote from website:
"Since the start of 2003, almost every currency has appreciated against the US dollar. This has raised operating costs per ounce across the industry. Although our costs are among the lowest in the world, the higher Canadian dollar has caused our costs to rise in US dollar terms. Fortunately, our large cash reserves are held in Canadian dollars. The benefit is our treasury has increased more in US dollar terms than has our operating costs."

Remember too that Goldcorp is producing 600K ounces of gold profitably, while Harmony is producing 4 Million ounces. Big difference. Goldcorp produces by scratching around the surface a little, while Harmony has to go very deep for the low grade gold. Hence the difference in profitability. Don't get me wroing, Harmony is a quality SA stock, but the difference is there none the less.

This also gets back to my point about this bull in gold being different from the last in terms of leaders. I think the huge gainers in this bull market will not be in SA stocks (although they will do great), the retirement makers will be Goldcorp, AEM, and the Jr's ex Africa.

Here is the chart:

[G-khan]

Nice looking chart with a very nice well defined channel..