POG seems to be settling down a bit now.While news from Cyprus...

POG seems to be settling down a bit now.While news from Cyprus stays quiet I don't think it would be unreasonable to expect the pog to keep within the confines of $1380 to $1500.
The problem as I see it however, is that Cyprus at some point in the near future WILL have to sell at least two thirds of her gold reserves to ease the debt burden,regardless of the protestations from her Central Bankers to the contrary.They have no choice.
This will almost certainly cause the pog to plummet yet again, probably even lower than the $1300 it flirted with recently.
The reasoning for this will be given by the agenda driven gold buying scaremongers as necessary, because if Cyprus can be forced into a corner to sell their gold,then why not Italy or Portugal or any other of the member Countries causing carnage to the status quo and pog.

What is not being mentioned in this scenario of course,is that there will doubtless be re-positioned goalposts for those Countries other than Cyprus, to prevent such an occurence from happening.

Brownie points will be considered for those who accepted and implemented austerity measures, culminating in debt repayment timelines being extended etc.Like certain banks,these Countries will be considered too big and too important in the grand Euro scheme of things to be allowed to fail. They must not and can not fail. This is the underlying mantra I personally perceive to be coming from those select heavyweight mandarins in charge of this nonsense.
Allowing the Euro and the Eurozone dream to descend into abject failure and derision is absolutely not an option in their thinking, and must be prevented whatever it costs.

For whatever reason however,I feel the market will not factor this thinking in when Cyprus finally gives up her Gold, causing more panic selling like we have just witnessed.

The bigger problem is the timing.
It looks more or less a given that the March quarterly for Focus is going to show a hefty loss caused by exploration costs already estimated.
If Cyprus does sell her gold, and the quarter results are published at the same time,then it could cause the sp to drop so low that Focus are forced into a share consolidation scenario that they had not wanted or anticipated so early.
This would need some steady nerve to hold on and obviously each individual will make their own decision as to whether to or not.

As for the future, I still see a significant recovery in the pog over the coming months once the scaremongering has run its course.I believe those experts who are now suggesting that problems in the Eurozone Countries are now beginning to look brighter, are absolutely kidding themselves and that pog will continue in a bull market for some considerable time to come.

The upside for Focus Minerals?
Well they certainly have enough funds to mothball production if they need to, and concentrate on finding the elephants to increase resources.
Obviously a huge find from any of their tenements is what is needed to give the sp a boost,but what they don't need is more acquisitions in such times of uncertainty,and they DEFINITELY do not want to be even entertaining the idea of mining Nepean.

There are still possibilities with this outfit in my opinion but they are becoming increasingly more and more of a gamble and certainly not for the faint hearted.

For legal reasons all of the above is purely my opinion only, and nothing has been based on known facts or hidden information,and is definitely not to be considered in an advisory capacity in any way.

Good luck all.
i