hi ho .. hi ho .. gold shares are the go imo, page-3

SP

It is far too early for this correction to be over.

The US market is going to go down a fair bit - perhaps 10-12% from its recent high.

The ASX market will also fall further - another 10% is likely, back to May 2010 low - during which the goldies will continue to get smashed.

I do not expect to see our goldies to start to recover before July 2011.

What is happening in Japan has made things a lot worse in the sense that there is hightened global risk aversion.

There is really no need to rush in to buy any goldies. They will just get cheaper even if gold stays around $1400USD, which is not a given.

US hedgies are beginning to selldown their positions, I just hope we do not get another flashcrash.

The good thing is that there will be ongoing money printing around the world. QE3 looks more likely to come sooner rather than later, perhaps even in 2011. Obama wants to be re-elected so there will be further stimulus there as well. Interest rates will stay low, and will be negative in real terms, which is also positive for gold.

Best to contain ones expectations, instead of thinking that all is OK. Also, it is too early to buy uranium shares, but I hope CSG companies come back in favour as I hold some WCL shares.

Good luck.

loki