LouHmmm... I guess you can say the market is always right...

Lou

Hmmm... I guess you can say the market is always right because the price is what the price is, however the market is rarely rational!

I hope the price doesn't go below 24c. If it does I have seriously misread what is going on and would think it would not be there long anyway. I'm not much into technical analysis; bit like the weather forecast, highly accurate for the next 6 hours but becomes increasingly less reliable after that.

There is another factor to be considered. Mergers and acquisitions amongst gold miners will become increasingly important for survival, particularly with the uncertainity of the future direction of the gold price. As well the Australian dollar remaining high is not good for the revenue of the Australian gold miners. While there is speculation of a takeover there doesn't seem to be any 'talk on the street' about anyone 'dating' Saracen. Perhaps some investors are nervous that when the music stops SAR is not going to have a chair to sit on. I don't agree with this sentiment but the market is hard to read at the moment.

What's your thought on the price of gold? Because most gold miners are a one trick pony the POG is more significant than what I think many investors realise. Subsequently I think you have to do as much research on the outlook for the gold price as you do on the company that digs the stuff out of the ground.