CanadianMineAnalysis.com article 1-Many mining stocks actually made their price bottoms last summer and have groped along since then. Others are in the process of finishing making their price bottoms. It is not an “all of them at once” situation; each stock is on its own schedule. 2-The Return of a positive gold market is required to start the engine. We need $1400 to $1450 an ounce gold to really ignite investor interest. At the present, while gold is languishing at the $1250 level, many mining stocks and some juniors are so cheap based upon their in-ground assets and cash per share that they are being given away at their current prices. But at price bottoms in any investment, very few take advantage of the “sale” on the stocks, that will never change. 3-Manipulation in the price of gold bullion continues which has made it extremely difficult to forecast. Paper commodity trades dominate the manipulation which is engineered by central bankers and brokers to keep the price of gold down. When gold moves up, governments cannot easily sell bonds carrying rates at 2% to investors. But the Chinese and others use the weakness to their advantage to accumulate whatever bullion that is offered for sale. The Chinese are nobody’s fools as they see price weakness as a buying opportunity and presently are buying approximately half of the world’s gold production. 4-Gold Cycles? They are positive for gold now as they suggest that gold’s price bottom is being completed. Yes, some important […]
