LAKE SHORE GOLD CORP 6.25 PCT DEBS T.LSG.DB

Gold Pricing and LSG in 2015

[davgro]

Just to add to my previous post.  I am still long on LSG and strongly believe they are a takeover candidate.  Fundamentals are sound and a rising price for  gold in 2015 will pay-off for those longs that weather the tax loss selling storm that we are currently mired in.

So what does 2015 hold for the price of gold ?  I will not be so bold to make predictions but I can point out some interesting observations I have made and let you make your own predictions:

• Contrary to popular main stream propaganda, the price volatility has had had absolutely nothing to do with fundamentals. Prices have been driven down by speculators on Comex who have been able to use huge short positions to short gold futures.
• The prices of Brent crude and West Texas Intermediate have plummeted over the last few months. While softer oil prices have usually had a negative impact on gold prices, as it hurt gold's appeal as a hedge against oil-led inflation, the price of gold has remained firm even though the price of crude oil has slumped to fresh five year lows.
• The results of the gold referendum showed that 77.3% of the Swiss people voted against the gold initiative. This reinforces the fact that individuals really don’t have a clue about monetary matters and are prepared to put their faith in our current fiat currency system which is continually manipulated by central bankers and their governments.
• The Chinese and Russians are buying massive amounts of physical gold.  Since 2013, the People's Bank of China has not changed their data that showed the nation's official gold reserves stood at 1,054 tons as of the end of 2013. However, gold transactions at the Shanghai Gold Exchange have been in the vicinity of 1,100 tons a quarter now and the monthly delivery volume of gold has risen to 212 tons from the respective amounts of 362 tons and 44 tons in January 2008
• Latest figures released by the U.S Treasury Department show that the government’s official debt balance has just surpassed the $18 trillion mark (with additional unfunded liabilities estimated at more than $100 trillion). 
• On Friday, US non-farm payroll increased to 321,000 in November versus expectation of 225,000, which was the highest number since January 2012. And, the unemployment figure was unchanged at 5.80% as widely expected. Despite the very positive payrolls report and the rejection of Sunday’s Swiss gold referendum, gold prices have held reasonably well.
• The on-going currency war looks set to intensify. The greenback soared to a seven-year high against the yen and a two-year peak against the euro while the ruble has dropped by more than 25% in the past two months. In other currencies the Mexican peso lost 3.0%  last week, the Colombian peso was hit for 4.3% the Peruvian new sol 1.1%, the Brazilian real 0.9% and the Chilean peso 0.6%. 

 

As more people become aware of what is really going on, they will accumulate physical gold and silver, and the prices will have to adjust to the real fundamentals and will no longer be determined by a handful of speculators.