According to Michael Fowler, senior mining analyst with Loewen, Ondaatje & McCutcheon, the major gold producers have gorged on debt and sold off their seed corn. In other words, they pursued exactly the wrong strategy in the past and are now paying the piper.
Natural gas futures fell to a 28-month low in New York as below-average inventory withdrawals and record U.S. production raised speculation that supplies will be adequate through the rest of the winter heating season.
Gold was down 1.72% at the end of 2014, but things are looking up for the yellow metal. Last week I returned from presenting at the Vancouver Resource Investment Conference, where sentiment for gold was through the roof.