http://goldprice.org/gold-price-australia.html

I’m trying to get my head around this while factoring in the AUD:USD

Can someone clever explain it to me (please).

I’ve been in Giralia for several years. They have enormous upside and have made steady gains for me so far (337%).

They have a lovely range of projects and have fingers in lots of pies.

It has been a bit of a mystery as to why the market hasn’t supported them better….

Note the list of spin offs… On the lower right of the image. These by and large are robust plays.

The image below shows some of the more recent JVs.

There is a simple method for Australia to keep its’ hold on oour resources or at least some of them…

It is good to see this being explored again

Explorers need incentives, Roche

11 September 2009 | by Michael Mills

Queensland Resources Council (QRC) chief executive Michael Roche has called on the Federal Government to introduce tax incentives for junior minerals explorers, such as a flow through share (FTS) scheme.

Reports from Australian Bureau of Statistics indicate that mineral exploration activity in Queensland fell by 38% during the 2008-09 financial year.

Over the same period, greenfield exploration investments across the state collapsed 61% to just $16.5 million, the lowest quarterly total since the 2007 March quarter.

According to Roche, the global financial crisis has increased the shortfall in new exploration activity in Queensland.

“Exploration is essential if the governments are serious about replacing a number of world-class mining operations in Queensland that are nearing their end of their commercial lives,” he said in a statement.

“Analysts agree that the supply of new investment capital is not going to improve quickly, it is urgent that exploration is stimulated through the tax system.”

Under existing taxation arrangements, junior exploration companies with little or no taxable income are unable to deduct exploration expenses immediately.

The vast majority of junior explorers do not have an alternative income stream, so their costs are pushed higher.

This results in lower levels of activity and fewer substantive new discoveries and projects.

According to Roche, a FTS scheme would allow unusable corporate tax deductions to be transferred through to a junior company’s Australian shareholders

“Eligible shareholders would then be entitled to use ‘exploration tax credits’ to offset their tax liabilities, thereby maintaining investment momentum,” he said.

“This has been demonstrated successfully in Canada for more than a decade.

In May, the QRC and nine other resource sector bodies presented the Federal Government with an economic study forecasting that 4000 new exploration jobs would be created in Queensland and Western Australia if an FTS scheme was introduced.

The report provided strong evidence that a scheme would result in increased exploration expenditure by 10 to 30%.

“The Queensland Government’s election commitment to become the greenfield exploration capital of Australia by 2020 will stay under a cloud as long as this comparatively modest form of economic stimulus is kept under covers at the Federal Treasury,” Roche said.

Gold’s mate Silver is looking very strong and could be on the way back to $20 USD.

The Silver 2010 future contracts have been given a strong trade triangle signal by marketclub…..Have a look at their analysis just enter Silver to look at all their silver analysis or put in SI.F10.E for the Siver 2010 futures…..

The image below shows the spot silver price over the last 2/12

IN an interesting article Paul Amery looks at the Dow/Gold Ratio.
He presents a long term and medium term view that suggests that the recovery in the Gold price has just started.

He asks:” Is gold about to embark on another upleg when measured in terms of the Dow Jones Industrial Average index?”
The chart seems to be compelling

Whilst I totally agree with his sentiment that we shouldn’t get too religious about charts (I’m often amazed how Technical Analysts advise people on the strength of a chart to buy or sell shares while knowing nothing at at all about the fundamentals of the sector or the individual company in question and repulse criticism with “it is all in the chart”) I think that it is worthwhile to understand what Amery is saying…..
“But the plotting of share prices in gold (rather than cash) terms, plus the use of a logarithmic scale, help illustrate two things. First, the current equity bear market clearly started at the turn of the millennium, not in 2007 (when many share indices hit highs in nominal terms). In fact, the equity market rebound of 2002/07 doesn’t even register on the chart because the price of gold was rising at the same time.

Second, although the Dow/gold ratio has already come down from 44 to 10 or thereabouts, the log scale of the y-axis shows that, if we are heading for the same kind of low that we saw in 1980, we’re only about a third of the way through gold’s bull market (in equity terms). That’s worth thinking about when reading debates about whether gold can break through US$1000.

As Fred puts it on his site, “the chart shows the cyclical nature of the battle between paper assets and hard assets. Paper assets excel when everyone is fixated on growth. When the growth phase ends, and preservation of wealth becomes the paramount concern, gold tends to excel. When paper burns, gold shines.”

We’re talking very long-term cycles here. But those who have stuck with precious metals at the expense of equities since 2000 have been richly rewarded. And, with real economic activity everywhere under threat from government borrowing and possible debt deflation, who’d argue against gold embarking on another upleg in its bull market against shares?”
Read full article

Here is a bit of data… I am unsure of what to do.. sit and stay? Or take money and run?

5 Year Chart

SGX is moving rapidly ahead with both production and profits. SGX sold 51% more gold between Dec – June 2009 up 51%

Read about Sino Gold at http://www.australian-shares.com/mining/SGX

Latest Half yearly report http://www.sinogold.com.au/newsite/Docs/PDF/754425.pdf

Sparty holds SGX.

All that glitters is Newcrest’s golden fortunes
Barry FitzGerald
August 18, 2009

LEADING gold producer Newcrest has been chased higher on the market after posting a better than expected June-year profit and again increasing dividends.

But chief executive Ian Smith said the market was still undervaluing the company, based on its five-year growth profile that envisages gold production surging by 40 per cent to 2.3 million ounces a year. Read article

Want to know hwere gold and silver ares going? Spot Gold Trend Analysis Done by Marketclub. Costs nothing but gives a useful heads up.

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