Inflation/deflation is a money supply issue. At the present point in time, easy money (low interest with reckless lending due to fee based greed) has bid up the price of any "thing" that required financing. We are seeing the deleveraging of that section of our economy right now and it will continue until the bad debt is cleared. I agree with you Puzzleman that Au and Ag are under valued in US$ terms: Ag even more so!

The confusion is this deleveraging supporting the deflationists point of view. The creation of more monetary credits will fill the black hole at some time and the velocity of money will increase. How close are we to inflation? Only time will tell. Ask anyone who pays the family bills and they will tell you that the essentials are rising in cost over the stated CPI. This includes health care, insurance, property taxes, education, utilities and most food items etc.

Tyhee is just not attracting interest at this time, as there are other investments that are more favourable. As most trading is programmed for miniscule spreads by the major investment banks the retail investor like us is not going to influence the mkt to any degree. The interest is just not there "yet". We need more positive news from management and definitely a higher Au price to spur demand in the juniors. If funding is a problem maybe a rights issuing like EXN completed recently will work.

As an aside, the economic and monetary policy is totally manipulated by vested interests who do not want exposure to light as their game will be over. Any investment can be managed to their needs ie Au and Ag . Hopefully we do not have long to wait.

Woodstock