Gold over US$2,000/oz. Where to now?

Gold over US$2,000/oz. Where to now?

Today our gold mining sector is well established with dozens of operating mines, both open pit and underground. Profit margins are high in most cases due to the strong A$ gold price. Interest rates are so low that there is no incentive to sell forward. The gold price is rising to hit a new high again and again. There is no expectation that the gold price has peaked, though no-one could reasonably refuse profit taking and corrections along the way. Still, no-one is in a hurry to sell out of gold completely. The gold market is going in the opposite direction to what was experienced in the 1980s.

We are seeing the best gold market that I have ever seen, but I'm not in a hurry to be blowing the full time whistle any time soon. Having said that, a number of the large gold producers' charts are either on, or are starting to test uptrend lines. The greatest level of interest is in the speculative end of the gold market - the explorers and new entrants to the sector.