A few notes from my friendly conversation with Kitco’s Alex Letourneau yesterday:

M&A has been seen as a critical catalyst to get the junior mining sector going so I’m glad Goldcorp’s made a move on Osisko and I agree with the market that Goldcorp will sweeten their bid.

The China Gold Stone Mining Development / Allied Nevada story is just weird.

The gold price needs to move higher for Colossus Minerals’ Serra Pelada project in Brazil to have any hope.

“These junior mining development companies are like a shark, and when they stop swimming, they are dead.” – A quote I stole from Nolan Watson

I am bullish on the gold price today for fundamental and technical reasons. Fundamentally, the marginal cost of gold extraction is effectively the cost of production. Technically, there was a powerful double bottom (June and Dec 2013 at the 1180 level) in the gold chart amid massive media pessimism for gold, which illustrates to me strong support for the yellow metal and more upside potential than down.

That’s the way I see it. As always these are opinions, and not advice.

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