why in the green, page-3

lgl has sovereign risk...papua new guinea..in troubled times best to be home.

Gold down but up in futures.

NCM has bhp, rio, xstrata, Newmont circling, and even private equity/global hedge funds that might pool together to buy it outright.

It really could double this week.The RBA may also become its biggest customer.

The new preferred hedge fund trade is LONG gold, long gold resources (NCM), LONG Yen, short USD, Short iron ore, short consumer discretionary.

Easier to buy a gold mine than bullion at the moment.

My call on this one has been right. In at 21.39 AND 25.10.

Low risk/high return trade.

Crazy but Im calling 50 by weeks end. Gold has to rally hard to 1000 oz.

From a news service today:

FINANCIAL market turmoil has brought a "flight to safety" mentality to investors, who are pouring cash into low-risk assets like gold.

Financial vehicles called Exchange Traded Funds (ETFs), which allow individuals to buy a stake in a gold bar without holding the metal itself, have received unprecedented flows of new money.

About $US180 million ($266 million) of new money flowed into two London-listed gold funds of specialist provider ETF Securities between Monday and Thursday last week. This was on top of $US93 million the week before, taking the total to $US4.88 billion.

Nicholas Brooks, head of research and investment strategy at ETF Securities, said: “The financial system is imploding and the real economy is starting to feel the impact, so investors are looking for somewhere safe to invest.”

The largest gold-backed ETF in the world is the New York-based SPDR Gold Trust, which has expanded its holdings by 26 per cent since Lehman Brothers, the investment bank, declared bankruptcy in mid-September.

SPDR Gold now owns 765 tonnes, worth more than $US22 billion, up about $US6 billion in the past month.

ETFs operate by selling shares on stock exchanges, in the same way as a normal company. Each share in, for example, SPDR is the equivalent to owning one-tenth of an ounce of gold; the metal is stored in a vault at HSBC in London.

Peter Fertig, an analyst at Dresdner Kleinwort, said: “Many investors view gold as the only lifeboat in the stormy sea.”

Investors are also buying physical gold to hoard in their own vaults as they take money out of stocks and bank accounts.