Maybe I should have suggested they add Glamis Gold to the XAU ?
With a $US250 market cap, NYSE listing, and good volume/liquidity, it might be a good idea.
FIX THE XAU INDEX LETTER
Matthew Holm matthew.holm@phlx.com
Ricardo Hunte ricardo.hunter@phlx.com
I would like to express my concerns about the XAU Index.
Since the removal of Hecla in March 2000 and Couer d'Alene in July 2000, there are no longer any silver stocks in the Gold/Silver Index. Viable candidates for inclusion would be Pan American Silver and Apex Silver, with market caps of $US150M and $US310M, respectively. Both are much larger than either HL or CDE.
The inclusion of Phelps Dodge in July 2000 did not make sense. I can understand FreeportMcMoRan since it produces much gold and silver, and could easily make a case for Buenaventura (NYSE:BVN, market cap $US900M, producing 1moz of gold and 11moz of silver), but can not see any reason for Phelps Dodge in the XAU Index. Since PD has dropped in price from $40 then to $27 now, I believe the XAU index does not accurately represent the gold/silver industry sector.
Gold stocks that might be viable candidate for inclusion:
Franco Nevada TSE:FN $US 2.50B market cap
Gold Fields NASDAQ:GOLD 1.95B
Goldcorp NYSE:GG 950M
Harmony NASDAQ:HGMCY 550M
Normandy, a $US 1.5B market cap Australian firm, probably belongs in the index but will eventually be included if Anglogold completes their proposed mergers.
Thank you for your time and consideration.
Best Regards,
Bob Johnson
GOLDSHEET Mining Directory
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