Hello,Beliefs I hold are that -1. The world markets and...

Hello,

Beliefs I hold are that -

1. The world markets and currencies are in a perilous state at this very moment.

2. If they manage, somehow, to overcome the present situation positively, there will be a growing demand for commodities (s. real things) primarily due to the China effect. This will certainly include the precious metals, particulalrly silver in this case.

3. If they fail to overcome the present situation, there could well be world wide depression. Commodities for industrial use may not, in that situation, fare much better than anything else, but the precious metals will - particularly gold, but also silver (s. the poor man's gold).

4. Over the last 2 years, the best 'class' results in the equity market have comefrom gold. Certainly, in that time gold funds have significantly outperformed any and all other types.

5. Thanks to the USA$ being the world's reserve currency andenormous amount of money invested in the markets and financial securities. The vast majority of this is handled by the institutions on behalf of other people. At this level, Australian money is a small, but not insignificant, part.

6. A change in investment direction for a significant part of this money will have a massive effect on prices.

7. From 2. and 3. above, I believe that institutions will start investing some of their funds into precious metals, particularly gold but also silver. If this is correct, the first stocks to see massive price moves will be those that are the biggest and the best.

8. The biggest gold producer in the world is Newmont, and, as a condition of its takeover of Normandy, it is now listed on the Australian exchange. This company is huge. It also has closed out all its forward sales (s. hedging).

9. Newmont is the first company that will feel and show the effect of world interest.

To me that all seems very logical, and so I've bought a paltry number of NEM this very morning. Constructive critique from serious readers would be appreciated.

TIA.

bye.dub