First of all in troubled times like now, especially when it is a currency crisis. Gold is deemed a currency not a commodity. IMHO, this will explain why Gold will be higher in price and will not follow other commondities like uranium, zinc, iron ore etc, down in price. Gold does well in deflation, as well as inflation, which will explain why it was the best investment during the 1930's depression, if you look at its history. Also a lack of economic activity in a country IMHO, has nothing to do with very high inflation, so if investors here don't want to buy because the economy might get worse, they might miss the boat on gold stocks, IMHO. Look at Zimbabwe as and example, the world's worst ecomony, with the highest inflation. So if the world's economies gets worse, Gold and Gold stocks by the way, could do very well, because of a lack of faith in paper money around the world. You can't print Gold. I am also from Canada, and not very many investors in Canada have ever heard of Diggers and Drillers newsletter, so the price moving higher on the TSX in Canada has nothing to do with that publication. IMHO. Though from Canada, (I do go to Perth all the time) I have invested on the ASX for many years, and I am also a subscriber of Diggers and Drillers, which got e-mailed to me today. They expect the price of Gold to possibly go to 27,000 dollars an ounce, I'm not kidding about that, it was on their cover page. cheers everyone.
OGC Price at posting:
$3.55 Sentiment: Buy Disclosure: Held
