Zeev's Turnips - No Politics Message Board

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Strategies & Market Trends : Zeev's Turnips - No Politics

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To: Zeev Hed who wrote (95713)	7/17/2002 9:34:26 PM
From: BGR	Read Replies (3) of 99280

Z, Please allow me to point out the weakness of that argument. The next 20% growth in POG may not increase the earnings of the gold producing companies by the same factor (of 5-10), as they are not starting from a 0 base any more (unless they have near perfect profit margins, which I suspect they don't). Hence, speculating on gold company stocks based on an expected increase in POG (itself a speculation), is no different from assuming that Yahoo will increase eyeball numbers by 1000% every year, for ever. Gold stocks are in a TA driven mania, and deserve to fall. And they will, just like the internets. Trouble is, gold has little intrinsic value. In that respect, it is no different than eyeballs. -BGR.

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