BNN.CA

John Ing, Maison Placements says perhaps gold to ~$3000/oz. within a year. The two viewpoints that are advocating for these price levels are the fractal analysis, and the eWave analysis.

I don't see much of a reason to completely disbelieve either projection, though most will assume at the outset that gold "could not possibly" reach these price levels, and is "going to crash." The sky is falling seems to be a recurring theme. Stocks are going up forever, and gold is crashing. The gold bullion markets will determine the price regardless of the prognostications as to the price or what the assumptions about the fundamentals are.

Ok, let's say it reaches this price spike, the correction will follow, though its unlikely that the gold bull market will have reached its mania phase just yet. A good assumption to maintain is ~$1800/oz. through this period. This might actually be too low. If you presume that gold prices are seeking their 40-year inflation-adjusted average, it removes all of the wild price speculation. The miner will presumably give you the resulting average realized price through the price changes.

http://watch.bnn.ca/thursday#clip646938

Jeffrey Christian's face-shaving excercise:

http://watch.bnn.ca/thursday#clip646585

If you so happen to be of the camp that "gold prices are unsustainable," and equities are going up forever, have a very long hard look at the TSX vs. Gold. This includes gold equities, btw. Gold miners have the trump card of overwhelming free cash flow and no debt going forward, despite the handicap.

Is GBN.V well positioned to benefit? The company certainly does not convey any message to bolster business confidence.

supersize: http://www.flickr.com/photos/11747277@N07/7029381297/sizes/l/in/photostream/

stockcharts.com

-F6