This is from INK..Insiders report..

The insiders in the gold companies are buying like crazy..

We will come back strong ..just hold on and Rico..hold on to the rest of your shares..

Portee

May 14, 2012 - Canadian insiders continue to buy as share prices drop in the wake of mixed US economic news and growing
uncertainty towards the future of the eurozone. Last Monday investors were hit with a storm of uncertainty out of Europe as
French and Greek voters effectively rejected a series of agreements negotiated over the past year intended to promote
financial stability in the eurozone. If that drenching on the political front was not enough, investors had to weather yet
another downpour of anti-inflation policy rhetoric from Jens Weidmann, German central bank president which was published
in the Financial Times (http://on.ft.com/KVMKSw) on the same day.
Investors went running for shelter as the most influential national central bank in the eurozone was seen as applying sun
screen in the middle of hail storm. Most investors seem to fear an American 30's-style deflationary bust as the big threat, not
an inflationary spiral.
However, within three days of the Franco-Greek electoral rebellion, the Bundesbank appeared to change its tune a bit. The
same newspaper which carried Weidmann's anti-inflation admonition reported (http://on.ft.com/JNgaFG) on a rather obscure
but nevertheless significant parliamentary document put forward by the German central bank last Wednesday which
effectively said Germany could tolerate higher inflation. The quid quo pro, no doubt, is that the countries in trouble stick to
their promised fiscal and labour market reforms.
Whether the apparent German moves will be enough to stabilize the situation in the short-term remains to be seen. Consensus
seems to be building that Greece is likely to leave the euro this year. Ironically, despite the financial uncertainty surrounding
the euro, gold remains well off its highs and gold mining shares remain in a bear market. Insider buying among the gold
group continues to hit multi-year highs. There are currently 3.4 gold stocks with key insider buying for every one with selling
as measured by our gold indicator (http://bit.ly/Jz8ply). Meanwhile, there is even more insider buying among the
economically sensitive diversified mining group where there are 4 stocks with key buying for everyone with selling.
However, the indicator remains below the levels reached late last year.
Canadian stocks received some good news over the weekend as China's central bank lowered its reserve ratio for the
country's lenders for the third time in 6 months. The move is made to help stimulate investment and boost economic growth.
While this should support share prices, the short-run impact may be limited. The effects of the first two ratio cuts are likely
just starting to make their way into the economy.
It is important to keep in mind that insiders are often early in terms of market timing. Until we see a peak in our INK
Indicator, we could potentially see more downside ahead for the broad market. Once we have a trend reversal in the indicator
to the downside, insiders will be signalling that stocks have likely put in a floor with the best bargains in the market having
been snapped up.
While watching our Indicator, we will also keep a close eye on the Canadian dollar. The loonie fell back in late trading Friday
despite a blow-out Canadian jobs number. Given the strong positive relation between Canadian dollar and the junior resource
sector, we will be concerned if the loonie does not regain the upper hand over the greenback over the next week or so.