we all know AVO has good upside potential. However as the...

we all know AVO has good upside potential. However as the general markets crater panic selling has now taken over and fear rules over logic.

Gold is going down for three clear reasons:
1) The general market rout takes all stocks with it including PM stocks;
2) Investors have stampeded into US Treasuries as a safe haven pushing the demand for the US$ up, hence the current US$ rally;
3) Investors owning leveraged portfolios of blue chip equities are now after a 20% correction being required to meet margin calls. To pay these some are liquidating gold holdings.

IMO, the US$ rally will be pretty short lives. Maybe two weeks. Thereafter, their could be a stampede into Precious Metals asa the other major safe haven. If this happens the HUI (Amex Gold Bugs Index) will rise and so will all decent gold stocks. Right now panic and fear are pervading the market. The time has come for rational analysis and cool heads before taking precipitate action.