Fridays gold price would seem to be only a mid term type correction and the gold price certainly has plenty of longevity.
China and other major buyers will buy gold on the dips in price.
Gold is becoming a safe haven investment for Hedge Funds etc and the buying also seems to be driven by market psychology?
At any rate, AAM's profit margins are going to look a whole lot better when they start producing the yellow metal, which I hope will be soon?
Gold and resources are a natural hedge against the US dollar if it collapses which is quite possible. This is why countries like China and India are building up their hedges in gold and natural resources.
Gold has still got tremendous upside potential if you compare it to 1980's bubble prices, we are not even at 50% of the 1980 inflation adjusted price of gold yet.
The inflation adjusted high for gold is about $2300 an ounce I think?
There seems to be the feeling that in 2 -3 years time, the US dollar will be replaced as being the worlds reserve currency and a new monetary system may be installed in its place?
AAM Price at posting:
38.5¢ Sentiment: Hold Disclosure: Held
