We remain positive on gold and expect it to top $2000 an ounce next year in response to increased physical demand, lower central banks sales and expectations of a weak US dollar in the wake of the US monetization of its massive debt. We also believe that the needed discussion of gold's role as a monetary medium of exchange will attract interest. Meantime, we do not see supplies coming to the market so the supply/demand factors remain favourable for higher gold prices. To be sure the lower gold price lends itself to heightened merger and acquisition activity, particularly among the junior explorers and developers who are in desperate need of financing. Financing has become as important as permitting, and the mining industry is now faced with survival. As such we have dropped coverage of Campbell Resources, Crystallex Int'l and High River Gold, who are facing major financing or permitting obstacles.

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