Strategies for Success in a Bloody Market

The Gold Report: John, early this year you predicted that as many as 500 companies listed on the TSX Venture Exchange would go under by the end of 2013. Do you stand by that?

John Kaiser: I think at least 500 companies are endangered; I doubt they will disappear by the end of the year. The critical time will be next summer, when their audited financials are due and their annual meetings will be held. If we have not had a turnaround by then, many management teams will hand the keys over to the stock exchange and abandon their companies.

Of the 1,800 companies we follow, 761 as of June 28 have less than $200,000 ($200K) in working capital left. That is the bare minimum needed to merely exist as a publicly listed company.

TGR: Is capital on hand one of the first things that you look at when deciding whether to invest? Continue reading "Strategies for Success in a Bloody Market"

Is Gold as an Investment Finished?

Before delving deeper into that question, perhaps we should see what the mainstream media thinks.  In fairness to the MSM, we note there are plenty of articles on both sides of the debate.  Yet there has been some media piling-on since the recent hard breakdown in gold.  The aptly named Howard Gold explains:

The Case for Owning Gold Has Collapsed; Yellow metal could be headed much, much lower .

Gold could be headed not much lower, but much much lower.  This was written on April 18, when the value assigned to the monetary relic (AKA its nominal price) resided at $1391 per ounce.  So be warned, Mr. Gold advises that gold could go much much lower.  Gold bugs take heed; Mr. Gold himself has put the double ‘much’ whammy on you!

After critical support at 1524 was lost our first downside target of 1440 or so was sawn through like Balsa Wood.  Okay fine.  For those who micro manage every tick in the price of gold (I am not one), then here is the situation; the current little rebound must extend back up to and through the broken support level at 1440 or the next target in the low 1200’s is up next. Continue reading "Is Gold as an Investment Finished?"