Hi Jarvis, haven't had time to do some videos this weekend but I...

Hi Jarvis, haven't had time to do some videos this weekend but I can give you my thoughts. With the gold price action on Friday night I think RRL will break out to a new 2-year high tomorrow and go above $3. There is a huge gap to $3.07 and I expect that will be closed very soon (possibly tomorrow).

I think RRL is ticking along quite well and share price movement is almost purely gold price related now given the consistent production results.

I have been thinking in the last few weeks with the rise of the Australian dollar whether it was time to sell my Australian dollar gold stocks (RRL, NST, EVN and DRM). The stock prices have remained high despite gold falling below A$1600. Last week's fall in the A$ meant the gold price moved up to A$1700 on Friday. That was A$100 higher in a week!

My long term forecast for the Australian economy is bearish and I believe this will be gradually reflected in economic data, as it was in the inflation numbers last week. Fundamentally I believe there will be a decoupling of the Australian dollar as a proxy for Chinese growth and commodities demand. I think it will begin to trade on the fundamentals of our own economy. Things that have been largely forgotten about during the China boom - massive private debt (read high house prices), the inevitable loss of the Government's AAA credit rating, no export industries etc.

In a solid gold price environment with a bias for a weakening Australian dollar I do not intend on selling these quality gold companies. RRL, NST and EVN make up 25% of my super fund and I think they will continue to be good long-term hedges on our own economic weakness and that of the rest of the world.

I think the moves up in NST, RRL, EVN taking place now are likely to be breakaway moves. All have consolidated after this year's early pop in gold. Now they are ready to find their next range. For RRL this could be a trading range up above $3.20.