The analysis by RBC Capital Markets is spot on. There's value in gold stocks hereto unrecognized by the market. Cast your eyes to the table posted in the photo gallery here: http://tinyurl.com/ygr4zk6

whereby certain gold stocks staged gravity defying ascents in the 1978 - 1980 period.

Miners such as Barrick Gold were able to weather the bear market by selling forward their gold. However,in a rising gold market these hedges have had to be unwound at a significant cost to the company.


'Here’s an interesting way to view the potential longevity of $1000-plus gold prices,courtesy of RBC Capital Markets.

Take your top tier gold stocks and calculate the types of price scenarios their share prices are currently pricing in:'

Read more:

http://ftalphaville.ft.c...oz-long-term-gold-price/

Bear in mind that South Africa's gold production registered a 2.9% year on year decline according to the country's Chamber of Mines. It ceeded top dog position in gold production to China.

'For some time,I have been warning that apparently plentiful supplies of gold and silver bullion-priced coins and ingots could quickly evaporate. Last Thursday we saw the first signs of a looming shortage of physical metals when just about all U.S. bullion wholesalers were unable to accept orders for the South Africa Krugerrand. One primary distributor said they expected coins in a few weeks,which I think means that they are waiting for a shipment of freshly minted coins from the South Africa Mint. My own company had to discontinue accepting new orders until we could lock in a supply...'

Read more:

http://www.numismaster.c...ticle&ArticleId=8590

@ Tutebeng

Please review these resources for historical gold prices:

http://www.kitco.com/charts/historicalgold.html

http://www.mrci.com/pdf/gc.pdf

Gold is a vote of confidence on government and a hedge or insurance against instability and chaos. It is traded in the U.S. Dollar,thus,is a barometer of the market's opinion of the United States. Gold's ascent between 1968 and 1980 was a thumbs-down on the financial management of the U.S. Conversely,its descent between 1980 and 1999 was a thumbs-up on the turn around measures taken by Federal Reserve chief,Paul Volcker.

Between 2001 and 2007,gold was flashing warning signals on the unsustainability of the budget,trade and current account deficits of the U.S. Post 2008,the consequence of a $12.8 trillion bailout and guarantee scheme to rescue the financial sector in the U.S. may be a collapse in confidence in the Dollar. The unfolding of such a condition would result in hyperinflation.

China's frustration with the handling of the financial crisis by the Obama Administration is a verbal testament of the market's growing unease with the financial management of the U.S.

As an asset,it has over the long term kept pace with inflation but its key role is insurance. In times of instability,insurance premiums spike. In times of growing disquiet over government,gold rises.

If you have additional questions,please ask.

Tutebeng,

Gold is insurance to individuals,institutions and states. The Dollar is the world's reserve currency,taking up 65% of the pie. The continual loose monetarty policies emanating from Washington guarantee a long term decline in the value of the Dollar. Most commodities traded in the Dollar will rise to compensate for the loss in purchasing power. This inflation shall permeate all nations open to free trade and markets. Gold has played a role as money in the past when nations were on a gold standard. It therefore is,along with silver,the most convenient way of hedging against financial mismanagement,instability and chaos.

My ascertion is that gold has by and large kept up with inflation. History shows us that this is not its primary role. For example,gold during the Gold Panic of 1869 known as Black Friday traded at $162 an ounce. A century later In 1968,it was trading at $35 an ounce inspite of the inflation rate over that period.

Gold is for the investor that has understood the fundamentals and drivers of the market which are highlighted in the following article:

http://economicedge.blog...armstong-gold-5000.html

Amidst the U.S. Thanksgiving Holiday and the Hajj Pilgrimage,news of a 6 month moratorium request on $60 billion of debt from the government of Dubai. Markets are clearly rattled with fears of contagion and are scouring financial statements for signs of exposure.

In 2007,Dubai had the enviable statistic of having 50% of the world's cranes on its building sites. Accomplishments of Nakheel Development during the property boom is chronicled in the National Geographic 'Megastructures' series. Debt leverage,sweet on the way up is toxic on the way down.

'The government of Dubai is in major financial trouble.

The government late Wednesday said it would restructure Dubai World and announced a six-month 'standstill' on repayments of the state-run wide-ranging conglomerate's debt.

Government-owned Dubai World is a conglomerate with interests in real estate,ports and the leisure industry. The firm carries around $60 billion in liabilities. Credit agencies Moody's Investors Service and Standard & Poor's downgraded the debt of a range of government-related firms,including DP World,after the restructuring announcement...'

Read more:

http://www.economicpolic...s-payments-on-dubai.html