Massive Capital Wave Approaches Gold

Posted by Neil Charnock - Kitco

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Capital waves control the direction of markets; they are flows of money, the liquidity that dictates direction.  There is nothing like a good gold rally because it is driven by fear.  As I will explain this coming rally is shaping up with considerable force, the capital wave to hit this market sector will be a monumental event.  You will want to be on this wave with as much capital as you dare to commit to precious metal mining stocks and gold (include silver).   

Generally speaking the fundamental picture for gold, silver, gold & silver miners around the world has never looked better.  Australia is a leading global gold producer and the quarry at the base of Asia so our prospects look better than excellent going forward.  Many of our miners are making fantastic progress on plant upgrades and new projects.  They have been exploring and working with new vigour over the past decade as conditions improved for the industry.

The gold price has also allowed for balance sheet restructure as debt is retired.  It has forced the closure of almost all of the old hedging, exposing the industry to the full upside on future gold price rises.  It has stimulated a new range of up and coming companies seeking to produce precious metals.  We have world class mineral provinces, not all exploited as yet.  These companies possess state of the art technologies that will unearth monster mineral deposits in Australia and offshore and make fortunes for themselves and investors.

We have some world class international miners and a range of world class operators in the smaller stocks down through the ranks.   This game is heating up.  Conclusion: Local gold sector developments and the global financial climate could not be more positive for the local industry, the Australian listed gold and silver miners.  The only problem is keeping up with the changes in this fluid investment climate.