In This Issue
Gold price is performing in a new environment
Although there hasn't been a great deal of publicity about the higher gold price, and share prices have not really reacted yet, the movement above US$1,300/oz is quite significant. For our gold producers it is icing on the cake that will support stronger profits. For investors and speculators, it shows that there is a renewed dynamic in play that is overshadowing the monetary factors that have previously kept the gold price in the range of US$1,200- $1,300/oz.
The Metals and Mining Index has had an excellent recovery since June this year, having returned to the highs last seen in January. That is a rise of approximately 20%. The big companies have been responsible for this rise, not the juniors, but where the big stocks go the little ones will follow as investors seek greater leverage.
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