gold to scale new peaks, page-3

In my view, there are opportunists who play with the price of gold and there may well be some truth to the manipulation theory. Ultimately, however, basic supply and demand must come into play. I actually believe it is right now. Gold cannot be produced profitably by many of the major miners at much below the current price. If the price goes down further, mines will simply close. Supply will diminish and the price will almost certainly rise again. In the meantime Russia and China are acquiring gold as well as Indians and Vietnamese and people in the Middle East. Gold is gradually rising in Australian dollars. A short while ago it was $A977. If the RBA does indeed lower rates tomorrow, it is likely the dollar will dip below 85c. If it goes to 83c, gold will be at a thousand in Australian dollars. That won't harm Australian producers and juniors. I sold all my other shares ten months ago and moved exclusively into gold for the same reason.