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Gold/Mining/Energy : Strictly: Drilling and oil-field services
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To: ItsAllCyclical who wrote (90086)4/16/2001 1:28:37 PM
From: Tommaso  Read Replies (1) of 95453
 
You may be right, but the technology for gold mining produces the stuff cheaper and cheaper, and once it is produced, very little of it gets consumed.

Both by necessity and by choice, energy is one of the last things that people will give up. The natural gas royalty trusts are currently yielding as high as 25%. That in itself puts a floor under their prices--unless natural gas drops back below $4. It's hard to see how gas can drop that far, since at that level all the LNG projects would become uneconomical and won't be pursued, and new pipelines, especially one to Alaska, won't be built.

Various sources that have been repeatedly quoted to me show that at this moment natural gas production is actually declining in the United States. I have tried to argue that this cannot be true, but when I do, people step forward with evidence that it is true.

I own gold and gold mining stocks, but I am not expecting a lot from them. Of course, I will happy to accept any profits that come my way. You may wonder why I hold something that I am not very enthusiastic about. I guess it's just stubborness because at one point I did believe in gold, and also (like you) the hope that it might serve as another kind of inflation hedge.
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