Category — Gold
July 10, 2013 Comments Off
As gold continues its descent this morning, no doubt headed to test the support lines at $1,200 an ounce, gold exploration companies on the TSX Venture are a little more desperate than they were yesterday.
Money is drying up for gold exploration companies, bringing down the TSX Venture exchange to 880 at press time.
With a ton of TSX Venture gold exploration companies headed for bankruptcy (likely before the year is over), it begs the question: are we close to a bottom?
I believe we are damn close to a bottom for the senior gold producers (within 5 -7% for the GDX), who have an average cost of production around $1,250 an ounce, but the exploration plays are truly a case by case scenario right now.
You see, for gold exploration stocks to increase in value (broadly speaking) we need two things: a high bullion price (above $1650 an ounce) and and active takeover market. We all know where the price of gold is right now ($1,275), and as I explained yesterday (click here to read report), senior gold producers are more concerned with writing down recent acquisitions as oppose to making purchases. [Read more →]
July 4, 2013 Comments Off
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This article is contributed by Pinnacledigest.com. One of the TOP sites for up to date information on the Canadian and US Stock Markets. For more information subscribe to their free newsletter.
Nouriel Roubini, known by the investing world as ‘Doctor Doom‘ for his constant negative stance on US equitiesand the economy, recently pulled a 180. This past week, in a shocking change of heart, Roubini endorsed US stock markets, bonds and global stocks for the next 2 years.
Roubini, an economics professor at NYU, has become famous for his constant bearish outlook and ability to foresee economic contractions, including the US housing collapse 6 years ago.
Speaking at the Milken Institute Global Conference on Monday, April 30th, Roubini finally capitulated to the awesome power of the Federal Reserve and central banks around the world. Although bearish on equities and global economies for some time, he is now convinced central banks are powerful enough to keep the markets strong - at least for another 2 years.
As an example of the power of a central bank and complicit government, take one look at the Nikkei exchange in Japan which is up over 40% in 6 months (since new Prime Minister and stimulus crazed Shinzo Abe took power). [Read more →]
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