Ouch, page-79

It appears that you don't need a very big hammer to spook Australian gold investors.

$A gold price is still up $3 from last Wednesday.

Nothing has changed for NST's business since last week.

In fact the $A gold price was sitting below where it is today 3 weeks ago as well.

What did they say about the market staying irrational longer than you can remain solvent.

All of this has to be viewed also in the context that many of these gold companies share prices were trading much lower at the beginning of this year. NST closing price on 4th Jan 2016 $2.79.

There are some fat profits in these gold stocks this year. Some of that fat is being cut now but the outlook hasn't changed, the conditions for these companies still remains positive for the foreseeable future. It's not like the iron price falling through the floor is it. We are talking very small moves here in the gold price.

This sell-off is purely machine driven sentiment triggering and don't they love eating up all those stop losses.

When the dust settles on 2016 I'm sure the central bankers won't have come up with any new answers, I'm sure the US economy won't have found new steel spring legs to run on and I'm sure the printing presses won't have gone cold for the last time.

Gold sentiment will shine on when people realise there is no way out of the trap the central bankers have constructed.

Eshmun