I agree with you that gold price falling is only a very short term phenomena, due to profit taking since I think December till now...
I have read articles after articles about the gold price, I am more inclined to believe (like yourself) that gold price will eventually go up in 2011.
Gold is a haven from risk, and just because we are in 2011, doesn't mean all the problems in 2010 has disappeared. As you have stated, there's EU sovereign debt looming, in fact even bigger states that potentially WILL be in trouble Spain and Portugal, much much bigger economy than those states that EU bailed out last year i.e. Ireland and Greece.
Possible double dip recession in US can still happen. And as you pointed out, the Federal Reserve is likely to continue with its programme of quantitative easing in 2011 to prevent deflation from taking root, while the pace of economic activity in the developing world will likely remain strong, igniting inflation fears.
In addition to that, You won't hear the last from rogue states like N Korea, and problems in oil rich states like Iraq and Iran to name a few.
As per my previous post, from HSBC Holdings (which is in agreement with many gold market analyst):
They have raised its 2011 gold price forecast to US$1,450 an ounce, citing expectations that investors will be attracted to the metal as a haven from risk.
The bank, which had previously forecast a gold price of US$1,425 an ounce, also lifted its silver price forecast to US$26 an ounce for 2011 from US$20, and said it expects the white metal to average US$20 an ounce, up from US$17.50.
And I read in a couple of articles that many central banks are buying up gold to increase their gold reserves too. Any public or private demand for gold is a good thing for producers like SBL.
I believe SBL has good fundamentals and doesn't deserve to be at 2.8 (but hey this is a typical unpredictable stockmarket, with shareholders of different risk appetite and resolute), and as a shareholder what we have to do is be patient and see what comes out of the activity report which will be out soon as you said the new few trading days.
Quantum46 Do your own research
SBL Price at posting:
2.8¢ Sentiment: Buy Disclosure: Held
