Given recent market action, we would be surprised if the euro-zone has more than 3 weeks left unless some sort of "big bang"
policy vision is brought forward. Last Monday we suggested that political forces in Germany were forcing the Merkel
government to consider a big bang in the form of a euro-zone redemption pact. The redemption pact essentially amounts to a
euro-bond backed by gold and foreign currency reserves. We thought we could have some sort of indication of the Merkel
government's stand on the redemption pact by June 13th. However, over the weekend according to stories carried by
Bloomberg and others, Merkel is rejecting any form of euro-bonds. We would assume the redemption pact is a no-go. At least
for now.
With markets tanking globally, Merkel may reconsider her position on the redemption pact. If she does and it moves forward
it will give gold a ring side seat in the euro-zone for the conceivable future. If she rejects the redemption pact solution, it will
likely ultimately be the end of the euro-zone as we know it, putting the global financial system in some degree of turmoil
during the process. After the predictable "strong dollar" selling, gold should have a field day.
That would be in contrast to oil which will continue to be sold should the euro zone break up. A low oil price will help boost
gold miner margins.
No wonder why our gold mining stock insider indicator is hitting multi-year highs (http://bit.ly/KRrWxY). Big bang or bust,
gold insiders seem to be confident that their shares will benefit from either scenario.
Meanwhile, insiders in the more economically sensitive diversified mining group are also buying. They seem to be betting
that whatever the resolution to the euro zone crisis turns out to be, bang or bust, it will eventually allow global investors to get
back on track focusing on opportunity instead of risk. However, if Germany overplays her hand, which we suspect she will,
the ride to getting back on track will be stomach wrenching for investors.

So that is the outlook for gold and gold miners..

We are this morning 612% oversold on the Gold mining stocks on the TSX..

So our news is coming at the right time..Soon the money coming off the sidelines will be going into gold associated products..mining company shares of all kinds..producers,big and small..explorers..etc..and the best bang for the investment buck is explorers with cash and gold in the ground..!!That's us..so hang on ..relax..have a Ripple or two and wait out the turbulence..with turbulence comes opportunity for us..

Have a great trading day..

Off to see my dentist ,,Dr.OOOPS!!!!..

Will check in later.

Good info from the conference and a "Atta boy"for those that attended and reported back..Thanks..

Portee