OTCPK:MEAOD - Post by User
Comment by
mstettleron Nov 20, 2016 7:57pm
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Post# 25487557
RE:RE:dollar gold battle going on
RE:RE:dollar gold battle going on fruitvale3067 wrote: Pdcon, you better hope gold holds right here, because if it breaks through support and heads lower it could get messy for miners again. Especially miners with high production costs that are struggling just to break even. Bring anyone to mind?
MTO cannot afford to see POG stay at these levels or fall further for a prolonged period of time. The financials simply won't allow it, not to mention the additional $$$ needed to bring Barry on line.
It's still a couple months before the new administration takes over. I think they are going to do things much differently than the current administration. What exactly those changes are and how quickly they are implemented remains to be seen. The Republicans have control of all branches for the next two years, so my guess is they act quickly (for a government). The price of gold may settle down for the couple months but it may get volitile again once the policy changes start to be rolled out and implemented.
The current price of gold, it's trend, and time are not on MTO's side right at the moment. They need the POG to start climbing, they need to find some higher grades at Bachelor Lake and they need to find a way to reduce costs. Unfortuanelty, the POG has dropped, gold grades fell the last quarter and cost went up.
So far gold's advance puts it into one of the more mild bull markets in the history of bull markets.
If the current decline is only a correction it is now the longest correction in the history of all gold bull markets except for 1968. If the decline continues past Thursday it would make it the longest corrective decline in the history of all gold bull markets.
The point is that if this is just a correction in a bull market then statistically we would be at the limits of all the corrections in history. So the odds are not on our side.
We should soon find out if this is the longest correction in the history of a gold bull or if the last 10 months was just a mini bull within a bear market that began in 2011.