Pic, those are all valid points but a news report out of Russia today states that at least part of their $160 billion oil funds may soon be plowed into gold. No doubt other massive oil funds and SWF's will soon follow into the minute gold and silver markets. Should be quite the stampede!

Regards - VHF

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Gold Gains in London on Dollar Weakness; Platinum, Silver Rise

By Rachel Graham

June 26 (Bloomberg) -- Gold advanced in London after the dollar fell to the lowest in more than two weeks against the euro, buoying demand for the precious metal as an alternative investment to the U.S. currency.

The dollar dropped after the Federal Reserve gave no indication yesterday that it would begin reversing the most aggressive series of rate cuts in two decades.

``The focus is on the dollar direction,'' Liran Kapeluto, a senior dealer at trading-system operator Finotec Trading U.K. Ltd., wrote in an e-mail. ``Gold is supported by the weakening dollar.''

Gold for immediate delivery rose $7.45, or 0.8 percent, to $893.82 an ounce by 10:54 a.m. in London. Futures rose $13.20, or 1.5 percent, to $895.50 in after-hours electronic trading on the Comex division of the New York Mercantile Exchange.

``We've seen a pick-up in demand in the past week or two,'' Mark O'Byrne, managing director of brokerage Gold and Silver Investments Ltd., said by phone from Dublin. He reiterated a forecast of $1,200 an ounce by the end of the year.

Russia's oil funds may invest in gold, Moscow-based agency RIA Novosti said, citing a Finance Ministry official.

``This is an interesting question, and is worth discussing,'' the agency cited Pyotr Kazakevich, deputy chief of the ministry's international finance department, as saying. ``But one must be very careful with precious metals, because this market has already risen very sharply.''

Russia's Reserve Fund and the National Wellbeing Fund were worth a combined $161.9 billion on June 1.

Silver climbed 12.5 cents, or 0.7 percent, to 16.91 an ounce. Platinum gained $33.50, or 1.7 percent, to $2,046 and palladium advanced $1.50, or 0.3 percent, to $466.50.