Short & mid term outlook for gold ..... and thus for gold miners.
Interview on BN just as the hammer came down on LSG stock, Andy Bell & an experienced metal tradet/strategist by name of McGhee.
McG said; short term outlook is not good, gold on shaky ground .... could go down to $1200/oz, which many feel is the break even point for higher cost producers.
Mid term outlook is better; Governments still have major budget and debt problems .... gold underpins all debt. ... retail demand is strong and jewellry makers will buy gold at these lower prices.
My Own Question; Are there covenants in LSG's bank borrowings that could trigger repayment in short order when LSG stock price drops below a certain level??
If so LSG could be in trouble. If not, they will just plug along
I bought at 36 cents. In for a penny, in for a pound, as they say in the 'old country'.