bsg and pjo

Current data:
Gold 664.2 with a high of 677 (-1.9% from its high)

Silver: 13.70 and a high of 14.48; silver fell 5.4% from its high.

Accordingly, PJO fell 4.45% to CAN$9.65

The situation in Mexico is governed to a large extent by any measures the US is taking re illegal immigrants and that famous fence they are talking about.

The US has turned upon itself in election year; some senators attaching themselves to any cause to get themselves re-elected, no holds barred, eyes focussed on the trough.

For years they have known about the illegal immigrants but haven't taken any worthwhile measures.

The NAFTA agreement between the US and Mexico ought to hold after the Mexican election.

However, when preparing target prices in Post 987497, I added this rider:
"It is assumed that production remains as stated, the Silver price is still a min. of US$13.50 per ounce and the Gold price is a min. of US$650/ounce and that PJO won't be paying any royalties to the Mexican Govt".

Of course, a 10% royaly would'nt really matter, not with the much higher Gold and Silver prices.

May3: Latest news: New poll shows once-dominant leftist Mexican presidential candidate on the decline:
http://www.signonsandiego.com/news/mexico/20060503-0734-mexico-elections.html

Any US cooperation would of course help the Mexican President Fox. Elections are on July2.

Any political fallout cannot be ascertained at this stage. However, I would suggest that Investors study the situation and take any measures, they normally would take when making any investment.


Gerry
Readers, please do your own research and you decide if and when to buy, hold or sell any stocks or metals/commodities.