ctindale - do not miss this opportunity, page-9

"if you look at the current gold price many brokers use for long term gold is often around US850. If you increase that to current spot, which is what I would expect they will do over the next 12 months, the effect on valuation is dramatic"

This also affects developers needing financing. Bankers typically use the rolling 3-yr average gold price. This is now $US 843. Six weeks ago it was $823. Given that gold really took off after Aug07, and assuming gold averages near-current levels until August 2010, then the rolling average will soon be $US 950+.

Given that I think the general markets, economy and commodities will remain sluggish relative to gold in the foreseeable future, then the margins for development projects and current producers will further improve.

Ctindale, I'm watching the gold silver ratio to help spot an equities drubbing that you outline. Silver always seems to be hit first as it was in 2008. To date silver is holding up very well. Also, the DOW is performing quite reasonably considering the rising USD.

Rowingboat