There is no doubt about it, metals markets have raced ahead during the past 12 months. It wasn't entirely apparent that it would be so back in November 2009, although some warning signs were already apparent. But what was clear, to us at least, was that the paper currencies were not the place to be, especially not the US dollar. Sterling, too, has been competitively devalued, and, as events have turned out, the euro's not been a particularly good bet either, as the domino effect of bad debt continues to ripple through markets. One currency has remained strong, though - the oldest one of all: gold. Gold is a currency not a commodity. Never forget that.
Gold now trades at $1540 - just off its all time highs. But to be at that point in May and June (traditionally the weakest months of the year for gold) says a lot. The strongest months of the year are normally July, August and September and with the paper currencies in disarray we are sure that 2011 will be no exception. We would not be surprised to see gold pass through $1600 and $1700 within weeks. The effect on the value of gold equities will, we believe, be electric.
Looking good for Focus Minerals !!!
FML Price at posting:
6.9¢ Sentiment: LT Buy Disclosure: Held
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