1. 365 Posts.
    The Gold price is an amazing point of discussion in the Australian market place with the first rally in the Gold price for many years commencing .

    After sitting down last saturday night to recover from Anthony Roccas miss at goal , I looked back in to the gold price to look for my opinion on the future of the bullion.

    I have always believed that all portfolios should have a spread of assets in blue chips,property,managed funds,asset specific classes but have never really been a bull on the Gold asset class for a long time.

    I have changed this view.

    Since September 11 we are living in a different world.

    There is threats of Terrorism in every part of the world,conflict between Pakistan and India is at boiling point,the first signs of inflation are appearing in world markets,debt is at the highest level in history,gold production is below gold usage and most importantly of all in my opinion is that the Asian banks dont have the cash at hand to meet their balance sheets.

    Taking all of this in to account where is one who lives in an asian country to invest.

    Property,I dont think so.

    The banks,I dont think so.

    Bonds ,the yield curve is going the other way now so again I dont think so.

    This leaves the equity markets and gold.

    It is interesting to note the Gold price in each of the last 3 nights the chart is almost identycal with the exception being the price being about 1.00 a ni8ght over the previous nights chart pattern.

    As the UK ,and European markets open the bullion is being bought up heavily,as the US market opens this follows through ,only to be sold off as it spikes dramatically with a shortage of sellers on volume taking place.

    The buyers take profit which sees a mid day pull back only to recover towards the asian markets open, in fear of being caught too short which I fear many Us managers may be.

    Only time will tell whtas happening with the gold price from here but I for 1 are a big fat bull and wouldnt be surprises to see us retest friday night 330 level on Monday and move towards 360 in the next few weeks.

    I hold a few gold shares

    AOR (MY opinion is another offer will come)
    CNTO (great grades potential to be the biggest gold mine in Africa)
    LHG (Still under valued since the book build in comparism to others in the sector in my opinion)

    Seek advise from your own adviser.I am not a broker

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