Sprott is one of the world's leading experts on precious metals mining. We need to be aware of his analysis.

The first part of his letter follows:

"Dear World Gold Council Executives;

As you very well know, the business environment for gold producers has been extremely challenging over the past few years. While demand for physical gold remains extremely strong, prices on the COMEX have fallen precipitously. This contradictory situation is the single most important obstacle to a healthy gold mining industry.

In my opinion, the massive imbalance between supply and demand is not reflected in prices because available statistics are misleading."

The entire letter is posted on his website:

http://sprottglobal.com/markets-at-a-glance/maag-article/?id=8424

IMO the facts that Sprott points out show the equivalent of an inverse financial bubble. Look out above for mining companies who operate at a profit in these challenging times. Especially those with large sums of cash in hand like Argonaut Gold. They cannot be manipulated with hedging like the majors.