"Is the gold rush over? Too far, too fast. That's what hurt gold...

"Is the gold rush over?

Too far, too fast. That's what hurt gold this week after its moment at a price above $US1000 an ounce, and then a fast retreat as demand dried up and sellers quit investment positions. Moreover, gold scrap, old jewellery and even old gold teeth had started to hit the market in volume in recent weeks, a sure sign of a ''top''.

Will gold run up again? ''Probably'' is the only safe answer because gold is an extremely price-sensitive commodity with thousands of tonnes available every time the price rises too quickly.

For investors with an interest in gold (and that ought to be everyone) now might be a good time to sit on the sidelines or even trim their exposure because last week's surge in the gold price changed the dynamics of the market.

Once the $US1000 mark was breached, gold investors, many simply active in the exchange-trade fund (ETF) market, were swamped by sellers of physical gold keen to cash out of surplus gold assets.

In one case, according to a US television report on Tuesday, the president of Gold and Jewelry Buyers of America, Jim Mataich, said he had even bought gold teeth last weekend at his store in Parma, Ohio.

''People were coming out of the woodwork to unload stuff just to get them through another month or two,'' Mataich said. ''Coins, rings, jewellery, heirlooms � even the gold teeth they had sitting in a drawer.''

That dramatic description, from a regional US pawn broker operating a shop called Cash-4-Gold, highlights the two-faced nature of gold, which is both a form of money and just another commodity used as a body adornment, by some industries, and in dentistry.

Until the $US1000 mark was cracked, gold was in its monetary mood, acting as a safe haven for investors fleeing most other investment classes. Over the weekend gold put on its commodity face with recession-hit households around the world cashing in everything from old bracelets to Granny's teeth"

Article Exract by Tim Treadgold Egoli 3 March 2009

PRU is naturally affected by the Gold Price and fell along with the other gold miners.

Always seek professional independent advice before buying or selling securities.