The Stock MarketI have just read the figures from the latest USA jobs report. This recession that most of the world is now having to deal with is, in my view, totally of the USA's making. Because of lax financial controls in both commercial and personal finance their toxic debt has now polluted the worlds financial systems and they have the nerve to blame the crisis on the failure of the rest of the world to react quickly to their problems. The lack of demand now being experienced for basic commodities stems not from a lack of inherent demand but from an inability to finance such purchases. What will now happen is that a backlog of latent demand will build up that cannot be supplied because of the widespread shut-down of mines, late stage exploration projects, and, most importantly, the exploration of future prospects to supply this latent demand. I think this is the end of the USA being the only superpower. The fact that the American system appears to be in meltdown indicates to me that that the emerging economies will have a much greater part to play, and therefore much greater influence in the future. In many ways Canada is an emerging nation because of the vast potential of its mineral resources and I hope that the Government and the state governments realise this and act accordingly.
As far as CYP is concerned this means that the price/value of gold must increase as safe havens for funds are sought.
I admit that I am a long term investor and therefore if my scenario above is to be believed then in due course the price of gold and the value of companies with gold rich resources will move upwards.
All my own opinion and being in the UK I have experienced first hand the effects of the financial pollution currently gripping Europe.
GLTA