Just bought into MML so I thought I would say a few words. After...

Just bought into MML so I thought I would say a few words. After looking at a relative performance chart of Junior gold producers including, TGZ,DRM,OGC,PRU and RSG Medusa is the one that caught my eye. Despite it having a good run over the last several week industry trends would suggest there is more to go.

Forecasts look good, minimal capex,decent FCF, relatively low sovereign risk, and most importantly I believe gold prices will rise.

On a macro level, global interest rates are near zero and in some cases such as Japan negative. This action to ease markets and promote spending is not working as markets have not reacted as initially thought. Large amounts of debt are tied up in bonds linked to Oil and Gas which in some cases are only several notches from being downgraded to junk bonds. As a result many of the sovereign wealth funds and pension funds that hold these bond (particularly in the US and EU) will have to get rid of them (as the are not mandated to hold them) putting more pressure on the banking sector and the market as a whole. When macro events like these occur the market turns to gold, resulting in increased gold prices.

There is evidence of this at the moment, have a look at the EU and US banking sectors - they have been completely smash and I believe as it always is, the Australian market will follow.

Time will tell but I am optimistic