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Gold/Mining/Energy : Gold Price Monitor

GDXJ 96.88

+0.9%

4:00 PM EST

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To: Bobby Yellin who wrote (44295)	10/29/1999 11:14:00 AM
From: Lightning	Read Replies (2) of 116762

One of the basic axioms of investing is to buy low and sell high. Selling calls is a bearish tactic. So the writers must have expected the POG to go lower. When markets go to the extremes in either direction (up or down), smart traders will fade the market by taking the opposite side of the irrational exuberance or pessimism (as the case may be). I would submit that miners should have had some sense that $255 per ounce was not a sustainable (long-term equilibrium) price since this doesn't cover their all-in costs of production and there is a huge gap between annual supply and annual demand at that price level. If not, then these guys need to fire their CFOs and hire a first-year MBA student to do their market and financial analysis. IMHO, of course!

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