“Reynolds said in its last conference call that it would be open to mergers. In light of what happened this morning, Reynolds may have left it self out to dry.”
“In our opinion, the supply and demand dynamics have set the stage for a multi-year bull market for gold. Even as companies begin new projects, decreased exploration in the 1990s has caught up with the industry. It generally takes a few years for a new mine to become operational. The gap between production and consumption of gold should widen as output likely stagnates and physical demand rises.”
