On October 12, 2000 Ken Benes says:
Gold up 3.50, the xau struggling to stay over 47. When the inevitable decline in the pog
returns, the xau will go down faster than the titanic. Between the efforts of the producers and
the bankers, gold has more rubber rafts around its neck than the terrorists could aim at
American ships.
On October 13, 2000 Kene Benes says:
Gold is giving up a good part of yesterdays gain as expected. Searching thru the news wires,
a common theme is apparent. There is little investor interest and the market continues to be
out of equilibrium with the miners continuing to overproduce with additional production
expected in 2001.
International crisis are becoming easier to handle. In the past countries had to worry about a
runnaway flight to safety in the gold market, today, the blip in gold prices is limited to the
shorts covering in case of a catastrophe. Investors continue to shun the market realizing that
any rally is short lived with tonnes of gold ready to be thrown at the market by the
producers.
On October 25, 2000 Kene Benes said:
Yes they will. Barrick, nem, pdg, fcx all will survive. Unfortunately, they can continue to fall,
which I expect. If investors have lost faith in gold, they have lost more faith in the producers.
Consequently, a further 25% drop is not out of the question. Should barrick and nem drop
to the 10 range, the risk reward becomes more favorable as I cannot envision either
company rising above 15. This allows a profit potential of approximately 50% from the 10
level. At current levels, the risk reward is poor. |
