shockingly she is now saying market is overextended and questioning equity evaluations. Im sure fund managers are taking note...IMO after this technical downturn, gold will be seeing some higher prices
Unless she reiterates comments given during a recent interview interview(new York insider) when she said
"And so even when the headwinds have diminished to the point where the economy is finally back on track and it's where we want it to be, it's still going to require an unusually accommodative monetary policy. I see no reaction from gold market..Market is already aware QE is winding down in October and interest rates staying low. I would want to know what she meant by those comments because if that's the case debt is no concern and it will continue to climb
Odds are high gold will continue to climb because there is no answer to the debt accumulated over the years, especially since 2008, in my view the disconnect between the 2 during 2013 was a hiccup and what we are seeing now is the correlation between the 2 is quite evident again...this in spite of prolong low interest rates.
By the time silver reaches $25 and opens the doors on EG2 again, mux will be over $4 (at the minimum), which translate to much easy fund raising. At just 4 dollars it will only take 13 percent of the market cap to raise the money for EG2...that's a big difference from earlier projections of over 20 percent at the price of $2.70..and I think mux will be way over $4 once silver reaches 25, so it maybe closer to just 10percent of market cap....
As I said earlier Modi's first budget is being released soon ( july 10). The extended bear market was significantly due to India's less then usual gold demand and has hurt mining companies. Look for some extra easing by india...I believe this will be a primary stimulus for gold and it will determine the next primary trend for gold price.
Also, I believe technically there has been a battle at the 1315 line between bears and bulls...Bulls currently have upper hand by looking at recent action
India's budget meeting next week may shed light to further relaxation of gold import restrictions...I see that happening especially with MODI at the helm and wedding season approaching starting September..the speed and type of policy changes will play a big part in gold prices. Geopolitical changes around the world have played a huge part in the recent upward climb
Mux Q2 production report will probably be reported next week as well
Looks like the bear has one or two bites yet...We built a nice cushion above the 50 day and 200 day moving avg..2.33 and 2.38...if we can stay above that this summer...we may end up seeing 4.00 by the end of year.
Most encouraging recent rally not only driven by short covering but the addition of new longs, largest weekly increase since 2007. Why change in sentiment? Janet Yellen, Russia, weakening dollar, recent GNP, low rates/higher inflation...bear market is slowly phasing out
At one time I was a buyer anything close to 2.00 or lower. The outlook has changed and we are nearing the next leg up for gold...1400 and thus my 2.00 buy mark has changed to anything lower the 2.50. We may see more downside short term...but don't be fooled..this sector is being primed. What's strengthening my belief?..The bear market duration is getting a bit long legged ( over 22months)...Europe's negative interest rate policy..yellen interest rate policy in spite of rising inflation...oil prices are spiking..and.I believe the charts are looking positive as well...Argentina mining policies will change significantly, look for investors to come back...
This quote from the ceo confirms what i'm been preaching about the recent developments in argentina and renewed interest from buyers and investments
Ross Beaty expected to sell Lumina two years ago. The Vancouver mining kingpin, who is Lumina’s founder and biggest shareholder, has a long track record of selling large copper assets at huge premiums. The Taca Taca discovery was well defined by 2012, and the buyers were circling. But then came the bad news: Argentina’s shocking decision to nationalize oil company YPF in April 2012. The move cast a massive black cloud over Argentina’s investment climate, which was already weak because of runaway inflation, strict foreign exchange controls and other factors. All the interest in Taca Taca ground to a halt in the wake of the nationalization.
“Basically all potential buyers ran away from anything in Argentina,” Mr. Beaty, 62, said in an interview.
Mr. Beaty was patient. He was confident the Argentina issues would eventually work themselves out. In the meantime, the Lumina management team had no other work they needed to do on the project, so they just sat back and waited. The tide turned this year, as Argentina took some positive steps to encourage foreign investment. It devalued its currency to bring it closer to its real value; it brought in a more honest system to measure inflation; it reached a settlement with Spanish oil giant Repsol over the YPF nationalization; and it struck a debt repayment deal with the “Paris Club” of creditor nations.
Those moves brought renewed interest in Taca Taca from possible buyers. First Quantum stepped up first with an offer and Mr. Beaty was glad it did.
With regard to my last opinion on the present state of affairs in Argentina, this news couldn't come on a more opportune time. Thank you for posting
Hey buddy!..hows it going? Its just my opinion...The only way this comes out worse then it is now is if the government sticks their head in the sand and stretches the bad news much longer than they should. With the new govt next year I'm betting it won't...and Cristina will be out. ..the only way they can stabilize the economy is bringing in investments... mining investors like me and others here will benefit nicely...at the very least it will be much better then it is now...Check out the last default...Minera and HOC actually formed MSC during the same time...influx of other mining companies invested in Argentina as well....Most important Argentina has a VAST amount of unexplored areas and in the world of mining you go where the resources are , no matter the circumstances and risk
It will good in the gov't would likely open up the country up to foreign investment by making the rules more relaxed and apparent. The potential investors have been sidelined waiting for Argentina to hit bottom before jumping in. They saw this coming and strategically waited for this to occur. Mining Opportunities will be plentiful . During a period of default it will be a great time to make strategic decisions but I suppose a difficult time to operate in
Depending on the companies objectives..Exploring, Producing, Construction, Buying or Selling...there is smart money out there that are waiting in the wings to invest into Argentina. PAAS that is on a cusp of constructing the Navidad mine will benefit significantly from easier and cheaper importation, easier and cheaper social licenses more relaxed gov't regulation etc..even though the province of Chuibut is not as mining friendly as Santa Cruz.. MSC (MUX) will benefit significantly by exploring San Jose again, good exploration results translates into good market results...If the objective is to produce they will be some operational cost savings like importation but probably be offset by high inflation, so not much of a benefit ..probably a push. Most important to Mux besides increased exploring ventures at San Jose will be the influx of new investors looking for copper in a country that will benefit greatly from new foreign investments to help stabilize a turbulent economy that has just defaulted.....translation more mining incentives!...If you look back at the last default the mining boost was quite extensive.
Judges will get together tomorrow and decide next week.
The justices aren't expected to announce their decision until next week. The court could ask for input from President Barack Obama's administration or send the case back to the New York appeals court for more information on how to interpret state law. Although it is highly unlikely, the court could also decide whether to take the case or turn it down