Although the ECB continues to say they will not do a Quantitative Easing (QE) for now, the bets are growing that the US Fed. Res. will do a QE-3 in the first half of 2012. When and if they do, then the metals and their mining shares should rise. Until then, the metals and their shares could continue to decline as the US dollar strengthens into the high 80's or low 90's. If a QE-3 is implemented, the dollar would then fall (against the Euro) and the subsequent degree of the rise in the metals and their shares would depend on the amount and duration of a QE-3. Lacking a QE-3, the US could slip back into a recession or "deflation" at a time when the US Fed. Res. wants a little higher than average "inflation" for several years to inflate away some of the US debt. In other words, there is a small but growing belief that the metals and their shares could decline until a QE-3 seems apparant by the US Fed. Res., which could happen at any time in the 1st half of 2012. Upcoming U.S.Presidential and Congressional elections in 2012 are an added impetus for the Fed. Res. to try to inflate and to make the US stock markets rise, along with commodities, the metals and their shares. A QE-3 should have a very positive impact on PEM in addition to the company's noteworthy fundamentals, drilling success, additions to it's resource numbers, etc. Current projections for a QE-3 are that it would cause significant new highs in the metals, their shares commodities, the US stock markets, etc.

The US debt continues to grow at an unsustainable rate. Inflation is seen as one method of controling the US national debt. The next 1 to 4 years will be crucial for the gold market. Generally, the short term for gold is questionable or lower. However the longer term continues to look bullish for however long the duration. In my humble opinion, the stars are aligning for PEM to have a significantly better 2012 without a US QE-3, provided the company continues to succeed with it's drilling and expansion campaign. Adding a QE-3 to the equation may be like adding a rocket fueled booster to PEM's 2012 share price.

Below is Clive Maude's view of the precious metals markets.

http://clivemaund.com/gmu.php?art_id=68&date=2011-12-18