010703: J.Turk sez: XAU 128 when PoG=$400.
XAU divided by grams = profits
Turk's indicator for the relative value of gold mining stocks also is pointing toward higher
ground -- even as mining stocks have become stuck in the mud. Turk, who founded
payment system GoldMoney.com, uses as a model the amount of gold grams it takes to
buy shares in the XAU, the Philadelphia Gold & Silver Index (XAU: news, chart, profile).
There are 31.1034 grams in a troy ounce of gold. If it takes 6 gold grams to buy the
index, that's cheap in Turk's view of the world. 10 grams is expensive. On Tuesday
morning, it took 6.9 gold grams to buy the XAU, which was at 77.38.
Turk sees as a "reasonable target"
the level of 128.60 for the XAU, which is 64 percent ahead of the current price.
That's what the XAU should trade at when gold reaches $400 an ounce, Turk says.
For more, see Freemarket Gold & Money Report. <----written by Turk, of course.
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COMMENTARY:
This little jewel buried in Thomas Calendra's CBS Marketwatch on this date.
No, I do not subscribe as of this date, nor do I plan to, to Freemarket Gold & Money Report...just reporting the facts.
gold & platinum_tutor |
