Frank - when I looked at the gold charts, XAU, and the 19 intraday charts of the big producers all on one screen and all heading south, this be a bit of a worry.
Boy if the IMF, Central Banks policy together with whatever the squabble is over the mighty buck all combine to shut down most of the worlds gold mines, all or most of the exploration activity, I can't imagine anyone engaging in a program that would in such a short period of time wreck more financial havoc and hardship on such a vast number of people.
IF this continues consider this
- soup lines at the PDAC in March for anyone with enough money to even walk from Vancouver to Toronto to get there
- probably the PDAC can move back to the Royal York as I would expect there would be booth cancellations galore
- drilling companies out of business, layoffs
- all supporting industries such as the geophysics out of business
- brokerage firms with no business buying or selling resource stocks
- bankrupcies all over the place in the mining industry
- enormous hardships in the mining towns since they are basically one-industry towns
- lost revenue especially by our Canadian government, just think about the tax loss claims across the entire resource sector
- since a tremendous loss of revenue, not able to support initiatives
Man this is big time trouble ahead if this doesn't correct.
So buying into any exploration company with a river of trouble heading south and trying to swim upstream isn't likely to buy you a big fat turkey for the New Years day feast.
Sorry to be so negative, but we gotta look at the reality of the situation which at this point in time isn't very pretty site. I'm going to have to change the colour for down on my software packages so red doesn't get permanently burned into my screen. XAU still on downtrend at 66.41, on October 1, XAU was at 110, so almost a 50% drop in 1 month.
At the rate of drop in gold of about $3-4 per day, we should be at about $210 per oz of gold by end of December. |
