Dear shareholders,
In an effort to keep you up to date on all pertinent information regarding the resource sector and more specifically the supply demand fundamentals of gold bullion, please see the attached article titled, “Gold only tarnished on the outside and will regain ground in the year ahead” courtesy of Mineweb.
"Negative interest rates and systemic risks in the financial sector, the credit crunch are all making many fixed income assets, equities, and real estate a risky proposition," he said. "As such, investors could well start building their gold positions again given other asset classes have lots of risk associated with them and only limited upside."
In his analysis, Melek blamed "interference from U.S. regulators and anti-market speech-making coming from legislators of every political stripe" for "sapping investor interest away from commodities."
Gold only tarnished on the outside and will regain ground in the year ahead
While the surging dollar, U.S. regulators, and hedge fund woes have derailed gold, BMO Capital Markets’ Bart Melek asserts gold is “only tarnished on the outside,” and that the metal will regain ground in 2008-09.
Author: Dorothy Kosich
Posted: Tuesday , 16 Sep 2008
RENO, NV -
In a "Commodity Comment" released the Monday that Wall Street experienced its worst day in seven years, BMO Capital Markets suggested "that the gold market may be oversold, but it is not clear if a rally is imminent given the current financial and foreign exchange environment."
BMO Global Commodity Strategist Bart Melek summed it up succinctly: "Things are not ‘adding up', i.e. markets are not behaving in a consistent manner."
Despite the turmoil, Melek advised that gold will regain its ground into 2009.
Click here to read the article in its entirety.
Regards,
AGORACOM Investor Relations
