Hi Justfax,

I'm basically in agreement with you that the things that could take gold down in the next while will be:

I have ranked these according to what I see as most likely:

1. Governments selling their bullion hooldings

2. Increasing deflationary pressure (Likely short term.. less than a year)

3. No jewellry demand

4. Some change in sentiment due to some new multi government plan that is likely to come about as a result of all the pending collapses from bankrupt countries.

I'm a little cautious right now as I am finally, nicely back above water on my aurelian cost base with the kinross shares. (I still recall the gut renching feeling I had last year in April when I was down about 75%- I'm glad I rode it out)

I have been selling near the money calls on my Kinross and Barrick and I have been trying to time the purchases and sales with the daily swings in the share prices. This has worked out well as my average cost keeps coming down with these profits.

Longer term I can certainly see gold going much higher but I wont be surprised to see it drop over the summer back to the $800 level.

The emotion of investors getting in and out based on fear is the one thats so hard to guage.

I'm planning to lighten up on my kinross and spread some of that same amount over three or four other decent gold companies. I really like kinross and see its leverage as outstanding on a go forward basis. I'm a little gun shy of the Russian exposure though and want to reduce that risk in the short term. I seem to have difficluty pulling the sell trigger though now that I'm up and the momentum is positive.

Best regards

Ahead12