gdn are on the move, page-5

Hi Gizard,

Under normal circumstances I would have said the stage was set for a big Monday but with the correction to gold prices overnight the picture for small spec stocks like GDN is murkier. They are normally the first stocks shaken loose when the heat in the market reduces. Then again, GDN's price action yesterday was no doubt driven by domestic action on the drill front and this may continue to drive the stock next week. Good drill results would outweigh any temporary gloom on the international gold market - and I strongly believe it is TEMPORARY.

I remain extremely bullish on gold; in fact the concerted efforts of vested interests last night to thwart gold's continued rise had an air of desperation about them I thought. I regard Gold's retrace as a tactical retreat for a renewed assault on the $400 mark and beyond.

THe US administration is VERY keen to preserve the myth that all is well with its economy when it patently is not. It's like someone who is overdue with a debt repayment. He may see off the bailiff (gold) once or twice but he keeps coming back - eventually with a battering ram.

US debt levels are simply unsustainable and funded by blowouts in the currency supply. While this has enabled a semblance of prosperity to be maintained, it has been achieved at the expense of faith in the $US and the day of reckoning inevitably comes.

Anyway, all that is a long way round of saying I haven't a clue how GDN will react on Monday. I do have a fair idea though that the greyhound will run in the near term. It's a tug-of-war between domestic and international pressures for gold stocks at the moment I reckon and in the absence of local news (good drills) I suspect GDN's SP will drift lower with the temporary fall in the gold price.

I should remind you though, that (like Sergeant Schultz on 'Hogan's Heroes') "I know nothink!"

Regards,

Gupper