ingot we trust

here is a link to a good article from The Economist... I just love the phrase "ingot we trust" that they use... it is my new motto!!

http://www.economist.com/daily/news/displa...00&fsrc=nwl

I am very horny on gold, and PRU & CQT are my two favourite Aussie gold stocks. They are sadly both struggling at the moment when you consider the sort of free cash they will be throwing off in a few years, but I think they will both be re-rated once the market wakes up to the value they represent.

I think that Aussie investors haven't yet woken up to the scam that is happening with gold (and other commodities for that matter). I believe that the smart money in the world has worked out that the mega-inflationary policy of printing seemingly endless US Dollars has effectively devalued gold by a vast amount, and so they are busy exchanging worthless fiat currency for hard assets. This is what the Europeans did in the 1970's to teach Nixon about fiscal discipline, and I think the Chinese are very keen to teach Obama the same lesson.

I guess my theory contrasts to a USD gold price that is exciting punters by hitting new highs... however, in the scheme of things, I believe gold has a lot of lost ground to catch up, and I think this could drive the gold price a lot higher in the coming years.

when the penny drops and gold really starts moving higher, it is near-term producers that will benefit as they offer the best leverage to higher gold prices.

cheers... marwoode