are we getting delusioned with fml, page-12

morning all,

on the subject of the 'business' of fml - which in the end is to produce and SELL physical gold.

It seems that the product we produce has indeed great demand - and from the writings of some of our people about demand steering price (pog) and hence of course that cash that exceeds our production cost then going straight to the bottom line ----------- then this article is of interest, at least to me.
It came from Diggers and Drillers mag in email this morning.

(by Alex Cowie)
"Bullion buying at unprecedented levels

I've been getting more emails from readers who are having a tough time getting physical gold and silver, and in one case having a tough time dealing with Perth Mint. I'm not surprised after they announced last week that demand is:
"... currently running at unprecedented levels and we have been inundated by high levels of web and telephone traffic from clients all around the world. This has put tremendous pressure on our business systems and Customer Service department which have struggled to cope with the number of enquiries and orders."

It's not just them. KWN reported that:
" ...Peter August, CEO of Australian Bullion Company, Melbourne Australia, which is one of the largest and most respected bullion dealers in the country told KWN, "We have never, ever seen these levels of demand for physical gold and silver.

"One of the biggest changes we have found in recent times is that our client base has become much more savvy and they are aggressively buying on the dips....

"As an example, with the recent plunge in the price of silver, we have noticed that the demand for physical silver has exploded. Another complicating factor is the fact that there are virtually no sellers in the silver market.

"We have found the same exact buying pattern is occurring in the gold market. As the price declines, we have been experiencing an unprecedented amount of new orders for physical gold. Demand has been so extraordinary for both gold and silver, that our two main suppliers are in the process of ramping up capacity because they simply can't handle the current levels of demand."

It's a very clear picture forming – investors are hoarding. If we see ETF redemptions in the future, we need to look at them in the context of physical purchases.

And where there is this kind of demand at the mints, we will see higher prices. Mints will be able to raise premiums and/or commissions. Soon enough the price of physical will significantly diverge from the delusional paper precious metal markets.

The real, tangible thing would then become more valuable than that bit of paper representing a chunk of imaginary gold, in an imaginary vault, looked after by an insolvent bank, on the other side of the world.

On the site visit to Alcyone Resources yesterday, I asked the MD, Andrew King, about who was buying their bullion. Perth Mint buys most of it, and apparently it is 'extremely keen' to get its hands on it. "

And this is from a little joint in the sw of Western Australia ------------- just imagine what the demand is like in the US, Europe, Asia, UK etc.

If this article is true then bullion - the real stuff - the stuff that Focus Minerals produces as near as damm to 200,000 oz of per year right now ------- is indeed hotter than hot cakes.

So, personally, as long as our mob keep managing and working with the best interests of the company at heart and hence us, the shareholders - then I am very comfortable with my investment in fml.

I hope you all have a great weekend.

Pinto