PRECIOUS METALS
Goldīs time has come again! - The place to be over the next 5-8 years is in hard assets. and we believe, as Winston Churchill once said, "This is not the end, it is not even the beginning of the end, but it might be the end of the beginning."

. . . and Pierre Lassonde, President of Newmont Mining, said: "If you go back to that chart I talked to you about, the DOW/GOLD RATIO chart (see chart above), one of the points I touch on is that every hard asset bull market has ended with a low, low, single digit ratio. In 1980, gold was 800 and the Dow was 800. In 1932 the Dow touched 37 and the gold price was $35 in 1934, there was a bit of a disconnect in terms of prices. It ended up at less than two to one. I do believe that when you look at the financial imbalance in the US system, a 6% current account of GDP deficit, you look at the amount of debt being created in the private and public sectors, to unwind all of these excesses will take time. I donīt think it is going to happen in the next one or two years; it is going to take a lot longer than that. If you look at a low single digit number, I donīt think the Dow is going to crash through 1,000. In 1966-67 the Dow lost about 40% of its value going from 1,000 to about 600. In the 30s it lost 90% of its value but then you had deflation, outright deflation like we?ve seen in Japan the last 15 years. I do not believe we are going to see outright deflation in the United States, I think it is going to be more like a muddle through, so I still think the Dow is going to be 6000 to 8000 +/- something. When you look at the amount of money that has been created, what I see is a gold price that will have three zeros after the first number. But I donīt know what that first number is going to be. Yes, over $1,000. Is it going to be in the next year or two, I donīt think so, I think it is going to be a 5-8 bull market that we have in front of us. So the place to be over the next 5-8 years is hard assets. Thatīs what it is, gold, oil."

Romios Gold Resources Inc. (TSX:RG)
Follow up No 3/October 12, 2011

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