One wonders if last night's $31 rise in the gold price might signal the beginning of real interest in gold and gold stocks.
Certainly a rise of that order has been unprecedented in recent decades.
I'm not expecting a rapid re-rating in the sector just yet, as first we have to survive the aftermath of more carnage on Wall Street. A 358 point fall is a real concern, with possibly much more to follow.
However, in previous market corrections, gold has been smashed with the general market, in counter intuitive action, and frustrating believers in gold in the process.
One hopes that this time is different and BIG money at last flows into the protection of gold and quality gold stocks. Encouragingly, gold stocks were strong overseas as well in tandem with the gold price, a relationship that hasn't been evident for quite some time.
We will be seeing interesting times ahead, no doubt about that, but it is not going to be for the faint hearted.
Go IGR!
Cheers Nev
IGR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
