Hossking, may fall to 1750 us. Long term fundamentals are good...

Hossking, may fall to 1750 us. Long term fundamentals are good because the us has to issue trillions in bonds over the next few years.

Also new tier 1 mines are not being discovered quickly enough to replace existing ones.

Boddington, telfer, cannington, kalgoorlie super pit etc will be exausted in 15 years.

We then have a supply problem. It a very long way off, but miners need to boost reserves.

A way is higher gold price so gold sub 0.5g is mined, most miners do not mine 0.25 to 0.5 grade.

If they did, those low grades would meet supply shortages down the track.

Many analysts are calling 3,000 us per, oz next year and some 5,000 us per oz over the next decade.

Im surprised gold is sub 1800us per oz with the financial turmoil. This turmoil is going to last for years and will get worse before it gets better.

Were lucky we live in Australia hossking, it's possible the au dollar might get sold down. Bonus au gold up.

Does it effect gold small caps, most certainly. Just look at RXL and DEG.

If sbr has a good result, it will get a nice rerate, but if gold was high and bullish, a far better rerate.

Still, gold may recover in the next 4 to 6 weeks to get real bullish before sbr announces drilling.

Fingers crossed, gold touches 1750 and bounces up, then sbr gives us news.