Issue link: http://resourceworld.uberflip.com/i/759903
6 www.resourceworld.com D E C E M B E R / J A N U A R Y 2 0 1 7 I nvestors in the mining sector might have been forgiven for thinking their luck would never change towards the end of 2015; the downturn continued to savage stocks as metals and minerals prices remained in the doldrums. Positive stories were met with market indiffer- ence, while bad news provoked further fear and loathing. Those whose fortunes were tied to gold faced grim prospects as predictions circulated that the yellow metal would fall below $1,000/oz going into 2016. (All figures in US$) Gold not only held its ground but managed to break higher in a run that lasted from end-January into mid- summer. Much of the move came on safe-haven buying spurred by global economic concerns, with some added bounce following Britain's decision to "Brexit" the EU on June 23. Gold stood at $1,082.25/oz London pm fix on January 4, 2016 and hit year-to-date high of $1,366.25/oz on July 6, a rise of 25.21%. Silver did even better on its precious status, moving up from $14/oz London fix on January 4 to reach a year-to-date high of $20.71/oz on August 2, a rise of 47.92%. Mining stocks responded well, even beyond the precious space, and a number of compa- nies witnessed shares rise by many multiples, albeit coming off low bases when compared with pre-downturn highs. Mergers and acqui- sition activity also ticked up and there were several eye-catching developments, including the announcement towards end-September that Kirkland Lake Gold Inc. [TSX-KLG] would acquire Newmarket Gold Inc. [TSX-NMI] and create a merged entity on completion of an all- stock deal worth about CDN$1 billion. Gold retreated in late summer, eventually sinking to $1,251.75/oz London pm fix by October 14, although it had risen to $1,282.35/ oz at the time of writing. "Market sentiment tracked gold's price trend, doing well from late- January," head of Kaiser Research John Kaiser told Resource World. "But then gold stalled and the juniors, exploration juniors and juniors exploring other metals weakened in tandem. Gold got smacked down [after October 4] and it opened the floodgates, with capitulation-type selling witnessed." WhaT lies beneaTh? Gold's spot price is heavily influenced by a raft of externalities, of course, particularly those linked to the socio-economic climate. However, spot prices for gold and other metals are often used as filters through which many investors The Rocky Road to Recovery by Simon Rees rick rule, president and Ceo of Sprott US Holdings, John Kaiser, Kaiser research. RESOURCE STOCKS