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Politics : Ask Michael Burke

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To: Amir Shalit who wrote (20370)7/10/1997 2:32:00 PM
From: Knighty Tin   of 132070
 
Amir, It is true the bullion is more attractive, but the pe ratios for precious metals stocks are very misleading. They are extremely leveraged to the price of gold and a move of 10 pct. in the bullion can sometimes cause a move of 100 pct. or more in the stocks. I am not making excuses for them, but if you think there is any hope for gold rising, as I do, then the stocks may not be as bloated as a pe ratio may make them look. MB
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