What always amazes me is how fear sets in, and we see the...

What always amazes me is how fear sets in, and we see the marvelous "new" predictions of the end of the world, "collapse of gold" etc.

The only thing one can ever learn from history is that all of the learned and coolly calculated predictions have proven to be ..slightly askew...or just plain...wrong.

It makes you wonder why they are made, again and again. But for sure someone profits. Not hard to work out who.

One theory runs is that it is proven and tried method of parting fools from their assets. The fools panic. Sell with the other lemmings.

How one can rationalise the decreasing price of gold against the increase in price of the paper IOU'S which are being printed ad nausea, by governments which demonstrably have little credibility, ....other than to not even deliver on election promises they predictably could never keep in the first place.

Gold production is going down is the message coming through. Mines are going to close. Resources are being written down. Chinese not selling into the market. Supply side moving in one direction.

Exploration budgets slashed by 30-40% by the big end of town. The pipeline for scalable and quality gold assets is already paper thin. Now the pipeline will break, Average time to discovery in gold in Oz...north of 25 years, so lets pack up the Oz gold industry in a few years...will just be a trickle.

Its going be interesting to see how this ends up, but the signs from a supply / demand side look encouraging.

Good luck to those who believe in the appreciating value of IOU's.

Wonder who is going to make the big moolah out of this little shake of the tree.

Good luck to us all. Still happy to be in gold, and buying some more. Probably get a bit of silver now as well. Not buying Ozzie dollars. Relaxed and comfortable.

Perhaps we should ring an economist?