gold bull is back!!! , page-7

Good news for NST share holders...

1and2s I'm coming from a top down approach and specifically the gold industry which is the industry that NST operates in.

Markets: Gold defies Soros and Paulson

George Soros and John Paulson aren’t often wrong when they bet on a commodity or a security. This time they may be. After news broke last week both men slashed their investment in gold exchange traded fund SPDR Gold Trust, spot gold has continued to rally.

Since August 6 spot gold is up 7.5 per cent. At 0818 AEST it was trading at $US1379.36.

What’s confusing many, including perhaps Soros and Paulson, is that bullion, traditionally a store of value in uncertain economic times, should be losing its luster the closer it gets to the beginning of September. That’s when the Fed’s wise men have signaled, in not too subtle terms, that their $US85 billion in monthly bond purchases will ease as evidence is now showing the world’s largest economy may have finally emerged from recession.

But as markets typically discount events ahead of when they happen, bullion may have already factored in the end of quantitative easing. Spot gold, which fell 28 per cent between January 1 and June 28, is now up 15 per cent since June 28. The World Gold Council reports purchases of gold jewelry in China and India are at their highest level since 2008.

Stocks in Australian gold miners have surged. Alacer Gold’s share price has skyrocketed 38 per cent since August 7. Medusa Mining is up 6.6 per cent in the last two trading days of the ASX last week. Newcrest has added 5.3 per cent during the same period.

Gold may be defying its sceptics once more.

http://www.businessspectator.com.au/article/2013/8/19/markets/markets-gold-defies-soros-and-paulson