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Politics : Gold and Silver Stocks and Related Commentary

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To: loantech who wrote (11877)4/28/2005 9:49:48 AM
From: seventh_son  Read Replies (1) of 18308
 
tooearly may be onto something here, although I hope he could let us in on what fund he is talking or rumouring about here:

Message 21271132

When you think of it, fund money would help explain the market behavior a lot. It is a lot easier for someone who has a bunch of mutual funds to jump in and out, chase whatever is hot, and dump what is not than for individual gold stock investors. They don't look at the value of a specific stock they favour. They don't have to sit on sell bids that are never filled or always undercut in stocks that are going down and everyone has turned fearful on -- or sell at the market when no one is bidding and the sale would just trash the stock price more. Fund owners just sell however large an amount they want, and the mutual fund is forced to dump large amounts of whatever they can at whatever price they can get. The same downward trend causing cascading fund dumping would happen in the broader market if they didn't have a plunge protection team to stop the downward momentum whenever people get fearful. Gold stocks have no plunge protection team.
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