Supply and Demand Fundamentals Are Favorable for Gold

Source:

...gold equities continue to trade cheaply relative to their earnings and we may see some strong moves in these companies in the second half of 2008 as they start to show the translated benefit of the strong gold price over the past year...

...With inflation and uncertainty again rife in financial markets, investors should recall the characteristics of gold as a hedge in the difficult market environment that we currently experience.

In addition, gold equities continue to trade cheaply relative to their earnings and we may see some strong moves in these companies in the second half of 2008 as they start to show the translated benefit of the strong gold price over the past year.

...We recently had a meeting with one of the world's largest gold companies which estimated that global production will fall by 10%-15% over the next five years...

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