The resilience of AVO when the gold market has taken a bit of...

The resilience of AVO when the gold market has taken a bit of beating is pretty remarkable and testifies to the underlying strength of the company and the faith of investors who have not dumped the stock as much as they could have. The moving averages which opened up during the recent rally are now closing up at around the A$2.20 level. Gold may have bottomed, although we need more confirmation in the price. However, it looks as though gold will rally and so will AVO at around Christmas or shortly thereafter. The underlying causes of the credit crunch have far from gone away. Indeed, the process has only just begun. Wait until the ARM mortgages hit the market throughout 2008....and everyone one else dropping interest rates? Competitive devaluations or beggar thy neighbour is the apparent policy.