Issue link: http://resourceworld.uberflip.com/i/102869
"I believe that a reasonable fiveyear price objective for physical gold is US $10,000 an ounce…" His calculations show that the Real Dow has declined by 81.0% since August 2000 – the worst economic performance since the Great Depression. Woodhill states that on September 18, 2012, (five days after the announcement of QE3), the Real Dow stood at 7.65, the same level as it was in August 1951. "This means that the disastrous Bush–Obama–Greenspan–Bernanke economic policies have wiped out the real value of 61 years of work, savings, and investing on the part of the American people." For a historical view of the Dow:Gold ratio, see Figure 2. In addition to QE3, the gold price has several market demand forces propelling it upward. Weary of holding depreciating US dollars and euros, central banks in countries like China and Russia are increasing their reserves of gold and other hard assets, including silver, platinum, farmland and agricultural products, which are untainted by the mirage of financialization. In 2008, the world's central banks as a whole turned from net sellers to net buyers of gold. In the second quarter of 2012, central banks purchased 157.5 tonnes of gold – a 62.9% increase from the first quarter and a stunning 137.9% increase year-overyear. This was the most gold central banks have purchased in a single quarter since the World Gold Council (WGC) started tracking central bank purchases. Apart from the usual purchases by China and Russia, buyers included South Korea, NOVEMBER 2012 TSX: ELG Production, Development and Growth Elgin Mining is a Canadian based company focused on production at the Bjorkdal Gold Mine in Sweden, which has produced 1,060,000 ounces in the last 24 years, and the exploration and development of the Lupin gold Mine and Ulu gold project, both located in the Nunavut Territory, Canada. Elgin Mining also selectively reviews opportunities to add advanced stage development projects to its portfolio. The Company has a strong balance sheet, generates significant cash flow from gold sales, and remains un-hedged. #201 – 750 West Pender Street Vancouver, BC V6C 2T8 Tel: 604-682-3366 Email: info@elginmining.com Website: www.elginmining.com www.resourceworld.com 11