Reality Europe and USA debase the currency to fight deflation but gold barely goes up. It tries 3 times over one year to go above $1800 but keeps bouncing of the ceiling and heads back down. That is gold price reality.
Anyways this does not matter. Gold never matched with venture stocks. If it did we would all be rich men now. Look at TSX Venture chart over 5 years against the same gold chart. Venture down from 3000 points to 1000 points now. Huge drop. Venture down 43% just this year. Gold over 5 years from 800 to 1800. Up 125% in same time. Major difference, eh?
So this money printing does nothing for the stocks. Most of the investors are in Canada and they know inside the economy is headed down. You know why? Drive around any major city right now and look at all the for sale signs on houses with price reduced. We are just starting going through a whole country real estate crash. People with to much debt and leverage, it is what fuelled the bubble. Now we have the deleverage and nobody has much invested in pension or RSP. No wage growth for years and most people getting older. CPP / QPP not going to save you. Guess where the money comes from? Restructure debt on house, lines of credit, credit card, RSP, savings drain. There is no real money in system. Just credit. Now with real estate bubble burst we get the big write down. Remember what happened in the US stock market when the housing bubble burst? Big time pain for the stock market that never recovered yet.
I see this company did a financing with flow through months ago that comes open soon. Those people probably shorting now against delivery. They have a warrant and also the flow through gives them a good profit after the tax. GSR company says in news release they have no more drill results until next season. Maybe more than one year from now.
Then we have the tax loss season starting and guess what again? People’s stocks got destroyed this year. So probably they sell.
So tell me why this stock is going to go up again real soon? Forget about that, I see you again around 20 cents.
BD