preopen , page-13

Waiting will see timid hands sell out, which suits me perfectly. My dollar cost averaging at these levels is allowing me to accumulate and lower my overall cost basis most pleasingly.

This PRE waiting period is, however, a most dynamic one. Inflation numbers in North America, Western Europe, and North Asia will keep printing upward, underpinning gold. There will, I believe, be a marked disconnect for a while between gold and the USD when it is apparent that inflation is getting entrenched. If mainland Chinese households choose to bid on gold as an inflationary safe haven after the Chinese New Year holiday doldrums, then their nascent gold futures market will be something to watch in the immediate term as reported CPI trends up to 7.5% as of January's government figures (CPI figure from Xinhua.net, accessed on 16/02/08).

Importantly, to my mind, when PRE release further results and development plans, I am confident it will be into a supportive POG backdrop. IMO, the market is ascribing to PRE a notional in ground resource of some 70,000 ounces (assuming brutally conservative notional cash costs of around $600). A floor is a floor, and I am prepared to wait and accumulate from this discounted consensus.

My opinions only and, as always, good onya Rabbit!