It's a bit late for MTO to make it's big "production" numbers before the seasonal decline in Gold takes hold. Gold has fallen early this year and the sell in May phenom is advancing into early April. Devaluation of Japan/EURO/ and other currencies mean higher prices for US dollar and government bonds. Knowing this large holders will both accelerate and make earlier Bond purchases this year catching the retail investor off guard. Markets at record highs, International currency deflation, lower gold demand and Korea being insane creates "perfect storm" sell off conditions.
I was thinking that MTO sell off was overdone but now with delayed results (BAD sign) and RP stating that you can't expect 30% gains (YES we do, that's why it's called ramp up) and no teaser announcements to soften the production dissapointment smart investors are getting out as evidenced by MTO touching the 52 week low again today. As much as we would all like to believe Sprott you have to put the "Central Banks buying Gold" numbers in perspective. Over 10 years the largest purchaser of Gold (Russia) has purchased 30 Billion in bullion. Big numbers but let's put that in perspective, the USA s a deficit of $100 billion per month or 3 times more than the Gold purchases of an entire decade for Russia.
My opinion (posted for friendly debate)
sell the S&P 500 in May (NOW!) and invest in the Long US Government bond index (rather than sit in cash). The Long Government / Credit index outperformed the equity market for the May through October time frame over the 34 years between 1974 and 2008.
Credits - Some of this information is paraphrased from posted financial articles.