By Jeffrey Nichols on Mineweb:

Notwithstanding the recent correction - and the possibility that gold may yet fall further before bargain hunters and other buyers (including central banks) reappear - the four pillars of gold-price strength remain intact. We've spoken and written about these often - but they are worth repeating.

These are:

(1) Inflation-fueling U.S. monetary and fiscal policies;

(2) Central bank reserve diversification with the official sector being a taker rather than a supplier of gold in 2009 and the next few years;

(3) Expanding retail and institutional investor participation in the United States, China, and around the world;

(4) Declining world gold-mine production.

We have consistently warned…

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