Replies to post #19228 on Petaquilla Minerals Ltd. (fka PTQMF)

[mjkiii]

You are right. But definitely no implosion!!

Hot off the wire this morning....

“China plans to double gold consumption in three years, how high will gold prices go now?

China’s Ministry of Industry and Information Technology announced that it expected Gold consumption in the country would be running at more than double national gold production by the end of 2015, more than double Chinese gold consumption forecast for 2012.

According to the MIIT statement, domestic demand is set to surpass 1000 tons by the end of 2015. It said this would ‘widen the fundamental market shortage’ and noted that the shortage of supply will persist in the coming few years as domestic gold supply ‘might only reach 450 tons by that time.’

Official gold policy:
The ministry promised: ‘In order to strengthen the gold industry the government will increase gold mine investment, speed up industry consolidation and international cooperation. It also said it would ‘develop gold trading platforms and investment variety (presumably meaning ETFs).

‘With regard to acceleration of industry consolidation, the government aims to lower the number of gold producers in the country to 600 companies by the end of 2015 from the current 700. And, the top 10 gold producers could be responsible for 260 tons of total output, up from 100 tons, by the end of 2015.’…”

CHINESE ARE IN PANAMA AND HAVE BEEN FOR A LONG TIME SEEKING TO STRENGTHEN THEIR METAL RESERVES. PETAQUILLA IS PLANNING TO TRUCK OUR COPPER ORE TO PANAMA CITY AND SEND IT CHINA FOR SMELTING. CHINESE HAVE VERY DEEP POCKETS, AND EXCELLENT RELATIONS WITH PANAMA.

[Lojiko]

PoG has appreciated only 2.24% YoY. It's about to give a negative 12-month return on purchases from mid-JAN 2012 to mid-MAR 2012, unless gold pushes back above $1700/oz.

I think the gold ETFs have taken a lot of the steam out of mining stocks by providing a purer gold play, but if gold loses its momentum, we might see a return to investment in gold miners, which are still very profitable at these prices.

I'm still dreaming of $2000+/oz gold tho. :-)

[Implanting]

I don't think we'll see the POG move higher until the debt ceiling SHTF happens and that is March. Gold rose on the last time they had a debt ceiling fight in 2011. Japan and Europe are printing money like mad, so inflation has to show up some time in the near future.