Alliances The TSX Venture is in a downward spiral. Right now the Index is near 1037. In 2011 (just 2 years ago), it was near 2400 (a 55% drop so far). The last times we saw the TSX Venture Index at 1072 was in 2003 and 2009. In both cases, when the bottom was reached, the Index took off, as most junior mining companies did.
The low in 2002 was 1000. It then went to a peak of 3300 in 2007 (the all time high) and then it came crashing down to 700 in 2009.
My guess is that the TSX Venture Index will fall to about 900-950 this summer, and then take off after that.
The ‘cards’ so far in gold, are still with the US Fed (Bernacke) and especially, the NY traders, as they have been for quite some time.
However, the producers of gold, copper, nickel and PGM are not fighting back. Just recently, producers of both platinum and palladium, in both Russia and South Africa, are contemplating forming an OPEC style entity, which would affect the prices of both of these metals, on a global scale that would greatly affect the consumption (and price) in the US as well.
With respect to world gold producers (like Barrick, Anglo Gold, Newmont, Goldcorp etc), they should consider a similar plan. If they cut back on their production, which would also lower their own costs, then that would have a greater affect on the limited availability of gold, and would reward their shareholders in the long run.
I suspect that after releasing their 1Q results, the base metal producers will probably want to form their own Alliance as well.
The bottom line to all of the above is, the entire world (mining) is a hostage to the US.
Time for a change.