GOLD 0.51% $1,391.7 gold futures

I think you'll find gold rising because of:a) yes, USD declining...

  1. 437 Posts.
    I think you'll find gold rising because of:

    a) yes, USD declining (but gold is rising against all fiat currencies - including Australia!);
    b) declining production - South Africa, most of the majors, established mines are getting deeper etc.
    c) rising demand eg. gold bugs, india / chinese public, middle eastern / chinese / russian central banks.

    The advantage of juniors if you find the right ones (and spread your money over quite a few because of the risk) is:

    a) rising production in the face of rising gold prices;
    b) can choose those in safe parts of the world;
    c) re-rated as they get closer to production;
    d) likely buy-out candidates for the majors since they are struggling to replace their reserves (& their production);
    e) open cut - cheaper to mine than the majority of established mines

    If the ducks a lined up, the rewards will be staggering. That is the carrot.
 
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