misleading gold figures, page-19

The recent (final) breakout of gold was really fuelled by fear - of a fall in the greenback. Then the fall in the greenback actually eventuated, leading to a flight to gold. Gold makes a lot of sense for US investors as a place to park money and take more money back when the greenback has finished falling.

We are really seeing a re-adjustment of currencies and the greenback has had it coming a long time. The question is, will there be a significant rise in POG against the Aussie? There are bound to be fluctuations and spot deviations but overall it would probably be better for US investors to put their dollars in the Euro or the Aussie - much more predictable movements than POG and more or less equal rise over the past six months.

Compared to the tech boom, there is one big difference - the tech boom was fuelled by enthusiasm, the gold "boom" is fuelled by fear.