Precious and base metals are off strongly this morning. So too are mining indices.

And oil is down a lot too, to 51 dollars a barrel - http://www.pmbull.com/oil-price/ (use the 30 minute chart).

What many investors are missing in this relationship is that miners have already cut back expenses, and as energy prices are dropping, so too are their operating costs. This means that as they begin to make their financial reports over the coming weeks and months, there is a good chance the markets will be caught off guard, and will be shocked by reported profits instead of the expected red ink.

In this regard, foreign producers will do better because of more favorable exchange rates, so it's NOT all "gloom and doom" ahead for miners, even if commodities prices dip further from here.

...nothing in this to discourage potential partners at HMSP, in my opinion.

VP