THE HAYWOOD GROUP, Haywood Securities
"Gold may trade up to US$850/oz within the next two years, driven by surges in investment demand (GFMS) - Reports from the GFMS 38th Annual gold Survey indicate the possibility of a further surge in the gold price as investment demands override collapse in physical offtake. A potential slide in the U.S. dollar and political tensions in the Middle East remain the chief drivers for strong performance in 2006. Mine production grew by 2% in 2005, not from the major producing countries but from new projects in Latin America and recovery in Indoneisa. Production from South Africa, the world's largest gold-producing country, fell by 46 tonnes to its lowest level since 1923." (April 17, 2006)

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