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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: yard_man who wrote (4346)	7/18/2000 5:45:43 PM
From: re3	of 436258

got newmont ?? KAPLAN'S CORNER: QUESTION: Over the long run, what is likely to be the most positive development for gold mining shares? ANSWER: For most of the 1970s and 1980s, general-purpose mutual funds held gold mining shares in proportion to their appropriate market capitalization. So if gold mining shares as a group comprised, for instance, 0.23% of the total market capitalization, then the mutual fund would hold approximately 0.23% of its total assets in gold mining shares. In recent years, however, most general-purpose mutual funds hold zero percent of their assets in gold mining shares. The primary exception are funds such as S&P500 index funds, which are required to hold gold mining shares in proportion to their weighted presence in the benchmark indices. Therefore, whenever gold mining shares return sufficiently into favor so that the average mutual fund manager wants to hold them, if for no other reason than diversity, then the required buying that would have to take place would likely cause a rise of between 30% and 40% in the share prices of the equities which are selected.

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