3) The smallest of the major gold producers will be taken over before year end and quite possibly within the first quarter of this year.

A non traditional gold miner will be the winner.

Mining companies will continue the consolidation process in the gold and silver industries at an even greater pace than in 2009. This consolidation process should lead to higher premiums being paid for those few promising gold and silver projects that are not in the majors hands already.

With the consolidation in the gold and silver mining industry this should put the final nail in the coffin of hedging as the large miners will be able to finance the developement of future production from cash flow or share issuance, especially with an increasing gold price.

Eventually these large miners may even decide to wise up and hold back gold production from the markets which would further decrease supply to an continuing shrinking production. This of course would further increase the price of gold and silver and thus increase the miners profits.

All in my honest opinion of course.

F.F.