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re: regardless of what gold does The key imo, if oyu dont want to be TOO exposed to the risk of gold going either way (which is me), is to go for gold stocks that will not be too impacted by what happens to gold price.

For me this means selecting gold stocks that have a decent resource, which is likely to grow, and which are undervalued based on those resources. And the resources must be of a high quality that are likely to get into production even if gold were to take a tumble.

Hence why I am in IGR/IBR. Both may fall if gold tumbled but their downside is limited by the fact they have significant resources.

Certain gold producers on the other and that have gone way ahead, will be significantly SMASHED by any drop in gld price (as the profit premium built into SP will disappear). For example Lihir gold.

I am comfortable gold will rise, but not tat comofrtable that I would actually go and buy gold bullion, or highly priced gold producers.

Admittedly I am more interested in the AUD gold price. At the moment, US is consistently raising interest rates, while our RBA is leaving them unchanged. The interest rate differential between us and the US is now down to around 90 basis points and likely to get smaller. What this means is that the AUD is likely to resume weakening against the USD in my opinion...which is good for the AUD gold price.


Cdchi1