There are many opinions as to where gold prices are going. My opinion after much reading in the last 2 months is that we are going higher, much higher. I am not as bullish as Rob McEwen, the great gold investor who is predicting up to $5000 per ounce, but I do think $1500 in 2010 is very achievable and $2000 in the next 3 year is my med term target.

An article that I cannot reprint here calculated that the top 40 producers in the world now mine ore that grades on average 1.7 g per ton. This is predicted to decrease to 1.2g per ton in 5 years (makes CMM's Lamaque 4.8g/t look great doesn't it!) So this is contributing to increasing the cost of production dramatically. Add to this that most central banks who have been selling gold in the last 2 decades are now either on the sidelines or buying gold and you can understand why we are up so dramatically in the last few years.

From a technical standpoint, Peter Degraaf wrote a blog (http://www.stockhouse.com/Columnists/2010/Jan/9/One-more-nail-in-the-coffin-of-the-gold-bears

today that gives many reasons why gold is going up. I suggest everyone to read it. In this presentation, he said that gold bears would try to hold gold at $1145. Well, when I pulled up http://www.kitco.com/

we smashed thru that resistance so quick the bears had no clue what hit them.

Another important player in this gold story is China. A wise friend of mine said to me: if you want to make money, follow the chinese lead. Here is an article http://www.proactiveinvestors.com.au/companies/news/4149/china-golds-no1-producer-and-consumer-is-taking-control-of-the-market-4149.html?ASX200 that explains why China did not buy the IMF gold that everyone expected they would. As you can see, this scenario if true is even more bullish for gold.

Currently, I do not see another gold company with the risk reward profile of CMM. If anyone else believes they have such a company, I would invite them to post them here and why they believe it is superior to CMM. It would be great for debate but also to look at diversification within the gold sector.

Respectfully,

Glorieux