travelling nicely, page-12

Great articles that paints a well balanced picture. Thanks for that. Here it is for others but go to the link provided by j61034322...there's more.

Gold will keep its lustre amid uncertainty, says precious metals specialist
By Philip Haddon | 17:42:29 | 02 May 2008

‘As a result of the global financial crisis, the prices of small and mid caps were punished by broad aversion of risk,' he says. 'But an ounce of gold produced by a small and mid cap company is exactly the same as an ounce of gold produced by a company like Barrick. There is no differentiation in terms of product. But as a result, large caps are now twice as expensive as small and mid caps.’

‘The smaller firms now offer very promising returns in the next 12 months, even if the gold price tracks sideways,' the Craton Capital manager says. 'There is not only rerating potential, but also M&A which has the potential to accelerate big time in the next few months. Large companies need to grow their reserves, and so M&A is the cheapest and easiest way.’

Over the last four years the €188 million Craton Capital Precious Metal Fund has returned 148% while the FTSE Gold Mines index has risen 105%.