Depends on how you want to look at it 12 months ago when lease...

Depends on how you want to look at it 12 months ago when lease rates were at there highest Gold was at its cheapest.
You did not have to be very clever to figure that the industry could not continue to supply gold to market at that price.(supply and demand)
So people jumped on at 2% interest for a year and USD then depreciated by $50 to $60 against Gold to date nice profit in a otherwise depressed market. Plain logic and easy money.
Just an opinion here but the next phases is if appears with be a fear in holding currencies generally I am talking the big ones not ours AUD.
In other words commodities that require major capital investments in order that they can be profitably produced will only receive funds it they can.
Credits squeeze if you like and the result will be inflation in the price of some goods or deflation of the currencies depending on the position of your constant.
You could use a Big Mac as a constant to judge this but in 12 months time I doubt there will be many prepared to trade cash for it.

Some will use stocks but most stock are now in a down trend and many of the companies will not be able to increase margins and therefore profits. So in many cases the power of money entering the market against the power of the money leaving the market is all that is holding it up not fundamentals.
But that’s been going on for a while and it’s been continuing rising currencies that have supported such of it.
I have been in Gold Stocks for a year now and my portfolio is up considerably but if I had stayed in blues generally I would have gone no were other than trading opportunities.
If you consider the AUD side of things you have probably gone backwards.

So basically I argue that curtain commodities (precious metals being one) will appreciate against other commodities (paper currencies).

At present as I see it we are back to neutral and the run down to $250 was because people are basically pretty stupid.

Gyro

Hey just my point of veiw.