If RAU is trying to get Tregoora and/or Amayapampa up and running this year you would have to hope it is sooner than later if certain predictions prove correct.
Read a market commentary today which is firmly of the view that gold is going to increase signifcantly in price in 2009.
The point was made that the gold price is around US$879 presently. Now 29 years ago (1980) it briefly reached a high of US$875.
Gold has held up relatively well despite other metals declining through the latter part of 2008. In fact as money supply rose in the last couple of months so did the gold price. The view of the commentator is that with Obama about to significantly increase money supply again with the fiscal stimulus package (as well as other countries arounfd the world) then the gold price is going to rise.
In the opinion of the commentator if that is going to happen and if it were just to reach the same level now, adjusted for inflation, it would have to go to US$2,400.
In his opinion the signs are there with buying of gold increasing fast and gold coins in demand and fetching a premium to the gold price.
If it does happen then we have to hope that RAU is in a position to benefit quickly from such a 3 fold increase in the price. Remains to be seen.
BIG Price at posting:
2.8¢ Sentiment: Hold Disclosure: Held
