true or not true??, page-9

hi kal,

well, it wouldn't surprise me. I have wondered if some sort of short circuiting of the supply chain - or control thereof might show its face in the gold industry.

Gold is a very small industry, but it is a very important industry. It is history now that trading companies and the like have moved into the supply chain in eg. the bulks - coal being a good example. Rather than just guaranteeing supply, the idea was or quickly developed - to actually have some or a lot of 'control' over it - and hence price.

Can it happen with gold? hmmmm, I can't see why not. The chinese seem to have pretty much done it with rare earths. Trading houses have done it with coal ----------- why not gold?

After all, the world may well just be coming into a position where gold/pms are perhaps crucial to stabilising the situation - or at least being capable of doing that ------- so if that happened it sure would be a powerful thing to be able to control the supply of gold - real gold.

If it goes that way then it would be a very very big deal for the 5th biggest producer of gold in australia (and growing rapidly).

In fact, I think it could change the entire game.

My guess is the next 12 months will show some colours - the chinese are moving already, M&A in the gold sector will more than likely hit turbo very very soon - lets see who else moves, we may well have a totally new set of players come onto the block.

It may be good, it may be bad, but one thing is for sure - IF it happens there is only one way gold mining company sp's are going to go in that scenario ----------------- NORTH, probably at a hell of a speed - and if they do achieve control over the price of physical -------- hmmmmm, well, lets just say gold is a hell of a lot rarer than coal and a lot easier to store. Could be one hell of an interesting change.

have a great night

Pinto