This probably explains why markets continue to baffle by holding...

This probably explains why markets continue to baffle by holding up despite months of continually deteriorating news.
This is why I have stayed in the market (very selectively).

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/1/17_Von_Greyerz_-_Silver_Shortages_%26_Gold_to_Accelerate_Higher.html

"“I look at the banks here in Europe and they are an absolute mess, even before the French downgrade. We deal with French banks and they’ve had their lines cut by billions and billions. They couldn’t trade, and that was before the downgrade. It must be even worse for them now. This is what you are seeing in a lot of banks around Europe.
This just confirms we are very near a massive package of QE here because if they don’t do it there won’t be any banking system left here in Europe."

This last line (massive package of QE) always seemed to me the only likely outcome. I can't see any realistic outcome other than first gold reaching a price to reflect money printing to date, then a level to reflect future "massive" printing and finally a rush to gold probably leading to prices well beyond what you would expect needed to reflect the amount of printing which will probably result in a bubble that will amaze us all.
We are not even at the first stage. I estimate that to be around $2500-3000 without taking into account the huge rise in govt debts.
When experts call for $5000-10,000 gold, I will discount that for now, but I can't see any logical reason for ruling it out.
It is why I am so bullish on gold companies.
If I am right about gold, the best returns will come from those mines with high leverage to gold. Especially those already in production or close to it.
Burnakura is probably going to have high leverage so while it is not given much value now, that would certainly change if gold was above $2000-2500 and the cash begins to flow.

Yes my commentary is similar to what I have said before Canonman but at least the link is new :)

By the way, KGL has just had its highest close since 5th May 2011. Not bad in this market.