Former chairman of the US Federal Reserve had this to say about...

Former chairman of the US Federal Reserve had this to say about gold at a Council of Foreign relations meeting:

?If all currencies are moving up or down together, the question is: relative to what? Gold is the canary in the coal mine. It signals problems with respect to currency markets. Central banks should pay attention to it.?

If the US currency is weak, gold by default goes up as it is dollar denominated. What people are forgetting is that there is a two-fold effect here. When the currency is weak peopel start to by gold, therefore you have these two forces at play. OK the Australian companies need to convert their profits back to Oz dollars but the compromise is still in favour.

OK NCM has 1/2 million ounces hedged annual sales contracted for several years. But they also have 1.2 million ounces annual sales at higher prices.

The gold bubble hasn't even started yet. Gold should be at about $ 2500 an ounce at natural inflation prices. We are going to $ 1500 + by end of this year, from there could see a mass acceleration up next year. $ 1300 breached looks as a result of banker shorts being covered.

I got out of NCM yesterday as the "trend is your friend". Look to get back in today.