gold - got it yet? As you were saying pints........To date only...

gold - got it yet? As you were saying pints........

To date only a few select 'juniors' have moved up but when the $500 is breached a few more will start the climb north.Hopefully GRY will report some hits from Burakina Faso.

The gold price had about 4 goes at the $480 mark before breaking through & so the next target on the upside is the obvious 'head banging' $500. I say head banging as I am going to resurect Uriah Heep & 'Very Heavy Very Humble' on that grand occasion of the $500.
Tune in Australia!!

http://www.amazon.com/exec/obidos/tg/stores/artist/customer-favorites/-/156765/104-8639326-6059910


Up goes gold, and up go our goldminers



November 19, 2005

Australia's goldminers are hitching a ride on the soaring gold price, which on Friday reached an 18-year high.

The price of gold surged past $US486 an ounce overnight on Thursday, breaking the previous high set in late 1987.

The soft metal, seen as a haven in times of rising inflation, has been pushed higher by concerns about upward pressure on prices in the US and elsewhere.

"One of the major reasons investors have held gold is as a hedge against inflation," said Fat Prophets' senior resources analyst, Gavin Wendt. "Concerns have been around for a while now but I think people are starting to get a little more worried."

A decision by the Russian Central Bank to double its gold reserves has also lifted investor sentiment around the metal.

In turn, investors are also pushing up Australian goldmining stocks, albeit on a selective basis.

PNG miner Lihir Gold was the pick of the bunch because of its unhedged exposure to the gold price, Mr Wendt and Daiwa Securities analyst Mark Pervan said.

Shares in Lihir closed at $2.21 on Friday after hitting a record intra-day high of $2.23, having risen steadily in recent weeks from $1.745 at the start of November.

Mr Wendt also likes Dominion Mining, which operates the Challenger mine in South Australia.

The junior company on Tuesday reported record production for October and its shares have lifted from 61c at Monday's close to finish at 77c on Friday.

Market leader Newcrest was up 40c to $20.03 on Friday while Newmont had gained 7c to $6.33. Emperor Mines rose 7.5c to 47c.

Meanwhile, analysts say the price of gold is set to go even higher and will likely crack $US500 an ounce before the end of the year.

Mr Pervan said the fundamentals of gold over the medium term were positive and would underpin its continued rise.

"What you see is a lot of heavy resistance moving up to that number, but if it breaks through that threshold then it won't be bound by range and will move higher," he said.

Mr Wendt agreed gold could pass the milestone before the year's end and might break $US550 an ounce by the middle of next year.

"As long as the oil price stays firm it is going to keep inflation issues in the States at the forefront of investors' minds," he said.

Gold is now entering its seasonal peak period for demand as the Indian wedding season kicks off.

During the season Indians increase their purchases of gold jewellery, significantly boosting demand.

Mr Pervan said there was also strong demand in the Middle East. "The oil price is fuelling the Middle East so we are seeing a higher increase for higher quality goods."